How to Impose Credit Penalties on Telecom Fraud? NDRC: Include in the List of Dishonest Entities and Strengthen Information Disclosure

How Does Credit Punishment Play a Role in Combating Telecommunication and Network Fraud Crimes? On November 26, the Ministry of Public Security jointly announced the “Joint Punishment Measures for Telecommunication and Network Fraud and Related Offenses” with multiple departments.
Relevant personnel from the National Development and Reform Commission (NDRC) stated that the NDRC will, in accordance with the requirements of the “Punishment Measures,” work with various relevant departments to adopt credit punishment measures in accordance with laws and regulations. Those who commit telecommunication and network fraud and related crimes and are held criminally liable will be included in the list of severely dishonest entities, and the disclosure of list information will be strengthened.
According to the introduction, the “Punishment Measures” are an important supporting document for ensuring the implementation of the “Anti-Telecommunication and Network Fraud Law.” They also represent a significant step in further promoting the in-depth development of efforts to combat and govern telecommunication and network fraud crimes on the second anniversary of the promulgation and implementation of the “Anti-Telecommunication and Network Fraud Law.” These punishment measures will officially take effect on December 1, 2024.
The Paper noted that the “Punishment Measures” stipulate that individuals held criminally liable for committing telecommunication and network fraud and related crimes are subject to financial punishment, telecommunication and network punishment, and credit punishment measures, with a punishment period of three years. Units, individuals, or relevant organizers identified by municipal-level or higher public security organs as engaging in illegal buying, selling, leasing, or lending of SIM cards, IoT cards, fixed-line telephones, telecommunication lines, SMS ports, bank accounts, payment accounts, digital RMB wallets, or internet accounts are subject to financial punishment, telecommunication and network punishment, and inclusion in the basic database of financial credit information, with a punishment period of two years. It clearly specifies different types of punishment for different punished entities, reflecting appropriate punishment.
Meanwhile, while comprehensively applying punishment measures such as financial punishment, telecommunication and network punishment, and credit punishment, the “Punishment Measures” retain basic financial and communication services for the punished entities to ensure their basic living needs are met, fully embodying the appropriateness of punishment.
How does credit punishment play a role? Xing Xiaodong, Deputy Director of the Finance, Banking, and Credit Construction Department of the National Development and Reform Commission, stated that credit punishment mainly includes three methods: First, inclusion in the list of severely dishonest entities. The “Punishment Measures” propose to include those held criminally liable for committing telecommunication and network fraud and related crimes in the list of severely dishonest entities for “telecommunication and network fraud.” Inclusion in the list of severely dishonest entities is one of the important ways of credit punishment, which involves including dishonest entities that seriously endanger people’s health and safety, seriously disrupt market competition order and social order in fields specified by laws, regulations, and documents of the Party Central Committee and the State Council. Second, fully sharing list information. In recent years, the National Development and Reform Commission has continuously strengthened the construction of the national credit information sharing platform. As of now, the platform has collected over 78 billion pieces of credit information from over 180 million business entities, becoming the hub for credit information collection and sharing. After being included in the list of severely dishonest entities, relevant information of the responsible entity will be shared on the national credit information sharing platform, and then pushed to various relevant departments through the platform. The relevant departments will implement restrictive measures in accordance with laws and regulations and include them in key supervision scope to ensure that punishment measures are effectively implemented. Third, strengthening the disclosure of list information. The National Development and Reform Commission will disclose relevant dishonest information of responsible entities included in the list of severely dishonest entities to the public through the “Credit China” website, forming a strong public opinion deterrent.
The Paper noted that Article 8 of the “Punishment Measures” stipulates that credit punishment measures should be implemented through the following methods: (1) Including relevant punished entities in the list of severely dishonest entities for “telecommunication and network fraud,” sharing them on the national credit information sharing platform, and disclosing information on severely dishonest entities through the “Credit China” website; (2) Including relevant punished entity information in the basic database of financial credit information. At the same time, Article 10 of the “Punishment Measures” also clarifies that the punishment will be automatically lifted upon expiration, and relevant punished entities will be automatically removed from the list of severely dishonest entities for “telecommunication and network fraud.”