Encouraging Employees to Prevent, Report and Resist Breach of Laws, Discipline and Regulations

Recently CCB formulated the Rules on the Award for Employees to Prevent, Report and Resist the Breach of Laws, Discipline and Regulations with the purpose of improving the incentives for preventing and correcting illegal transactions and commercial bribery. The implementation of the Rules will help the bank enhance the risk management capacity, set up a sophisticated corporate governance structure, raise the operational and management ability and maintain a sustainable and healthy growth.

It is said that CCB takes the lead among the domestic financial institutions in developing the Rules. It is a major measure of preventing commercial bribery taken by the bank according to the arrangement of the central government and the China Banking Regulatory Committee and in line with its real conditions.

Earlier CCB formulated and implemented the Rules Dealing with the Breach of Regulations by Employees and the Interim Rules on Score Management of Breach of Regulations which have facilitated its efforts of standardizing operation and preventing and managing risks. While strengthening punishment on breach of regulations and discipline, it is necessary to award the employees for preventing, reporting and resisting the breach of laws, discipline and regulations, protecting the bank’s assets and maintaining credit security so as to build an effective incentive and disincentive mechanism.

According to the Rules, the ceiling of award for employees who prevent, report and resist the breach of laws, discipline and regulations is RMB50,000 and the specific amount is determined by such factors as the economic losses which are avoided or recovered, the effect of avoiding or eliminating credit damage, the efforts and sacrifices made by individuals and how difficult it is to discover, prevent and stop the breach of laws and regulations. Furthermore, with the approval of the Incentive Assessment Committee of the headquarters, an award between RMB50,000 and 200,000 can be granted to those employees who have had performed outstanding deeds.

The Rules strictly defines the following criteria of winning the award: 1). Discovering and preventing the counterfeiting of financial documents, papers and letter of guarantee and other financial fraud cases and avoiding or recovering capital or credit losses; 2). Resisting and stopping the criminal activities of robbing and stealing the bank’s assets and effectively avoiding or recovering losses; 3). Reporting serious breach of rules and other breach of laws and regulations which seriously undermines the bank’s interest, should receive disciplinary punishment and has been verified as true; 4). Employees who have been instructed, ordered or forced to breach regulations effectively stop the breach of laws, discipline and regulations through resisting and reporting; 5). Offering important clues for the investigation of cases; 6). Employees who are responsible for supervision and monitoring make great sacrifices for or have outstanding performance of disclosing, correcting, stopping and investigating the breach of rules or avoid and retrieve capital or credit losses.