The first crime is that the customer's qualification and identity are not audited according to the regulations of the central bank. This is the most important step to make a large transaction. Only when the customer qualification is confirmed can the bank carry out the follow-up business and prevent criminals from deceiving the bank through disguise and stealing a lot of money. However, in practice, banks often ignore this point for the sake of performance and not to miss rich customers. CITIC Bank apparently skipped this step by luck.
The second crime is not backing up customer information and transaction details. This move is obviously non-compliant, and CITIC Bank tried to cover up its wrong behavior. The bank's business personnel clearly know that their customers' qualifications are defective, but they still handle business in violation of regulations. Finally, they had to destroy the relevant consumption records, and even the most basic customer information was not kept.
The third crime is not reporting suspicious transactions and large transactions to the Central Bank. According to the existing regulations, all transactions exceeding a certain limit must be reported to the superior to prevent vicious money laundering.
The fourth sin is dealing with customers with incomplete identity information. Normal people will take the initiative to report their own information when handling banking business, and banks will check according to this information to ensure the legitimacy of this transaction. As a wide-ranging institution, CITIC Bank could not have acquiesced in the transaction without knowing all the customer information. This behavior has touched the regulatory red line, and it is not unfair for CITIC to be punished.
Citic's knowledge of the law and breaking the law also tells us that the supervision of the financial system must be strict, and criminals cannot be left with any criminal opportunities. In fact, this is not the first time that CITIC has received a fine of more than 20 million yuan. Last year, the company was fined 20.2 million yuan. The reason for being punished is different from this. It is related to the real estate in Otawa. In the case that the central bank clearly stipulates that loan funds should not flow into real estate, CITIC still handles related business for customers in need.