On January 21, under the guidance of Nanfang finance all media group and jointly sponsored by Nanfang Finance Law Research Institute and China judicial big data research institute, the “Nanfang Finance Law Summit Forum 2022” was grandly held in Beijing. Focusing on the theme of “making progress steadily and starting after compliance”, the meeting invited Hu Yunteng, former vice ministerial full-time member of the judicial committee of the Supreme People’s court, Xie Pengcheng, director of the Institute of procuratorial theory of the Supreme People’s Procuratorate, Yu Xuejun, former vice ministerial cadre of the China banking and Insurance Regulatory Commission, Bank Of China Limited(601988) Industry Association Bu Xiangrui and other guests, as well as leaders of financial institutions, experts, scholars and senior lawyers, Make suggestions on the relationship between financial corruption and financial risk prevention and control, internal control and compliance construction, stock risk disposal and other issues.
At the forum, Zhao Yunheng, chairman of the partner meeting of Xinglai law firm, delivered a speech on the theme of “compliance issues reflected in financial criminal cases”. Focusing on his business experience, he shared his three points of understanding on the lack of compliance construction in the financial industry.
The first is the lack of compliance culture. Zhao Yunheng said that all financial institutions have many compliance systems, and even specialized institutions for the construction of compliance culture. Some places have also set up a compliance culture year and carried out a lot of work. However, through practical cases, it can be found that the first core of corporate culture is legal awareness, and in reality, legal awareness has actually turned into evasion of legal awareness, not belief in law, Not to respect the rules, but to bypass the rules. In addition, corporate governance culture is seriously lacking. In the actual cases, there are many cases of applying administrative culture to enterprises, and there is a “one speech hall” phenomenon. Then, such as following market rules, democratic decision-making and mutual supervision and restriction system will lose value under this management mode. In addition, the values of financial institutions are reflected in the performance appraisal, which often puts economic interests first and considers less social responsibility, resulting in the illegal phenomenon of pursuing economic interests by any means.
Zhao Yunheng believes that enterprises and financial institutions do not really touch the soul of the construction of compliance culture, so the so-called compliance is impossible, and the construction of this compliance culture can not be completed overnight, but it must be paid attention to and solved.
The second is the lack of substantive compliance. Zhao Yunheng pointed out that in real cases, there is a phenomenon that “formal compliance is greater than substantive compliance”. It is said that this can be found everywhere in the banking industry. There are many illegal lending behaviors based on the pursuit of performance. If the corresponding lending does not meet the compliance requirements, mobilize enterprises to operate by changing the name and purpose of the loan to achieve formal compliance, resulting in risks.
The third is the lack of supervision. Zhao Yunheng also stressed that self-discipline can never compare with third-party forces. He pointed out that the compliance of financial institutions is mostly carried out through their own strength. The compliance committee is set under the board of directors and the personnel are composed of senior executives. The institutions involved in many cases have such problems, and the effect of this self-restraint mechanism is worrying, especially in the case of “paternalism”. Therefore, he suggested that a third party should be introduced to supervise and restrict.
“Within the enterprise, there is a relationship between employees and the boss. Employees need to listen to the boss. This kind of compliance construction is useless. Even if a compliance engineer is introduced, it just creates a new career for everyone. In the end, it still depends on external forces.” Zhao Yunheng said so.
Finally, Zhao Yunheng concluded that the compliance construction and risk resolution of the financial industry should not only rely on their own internal forces, but also need the change of the external environment and employment mechanism such as the business environment. Local governments and local departments should work together to create a good environment, and can not expect an enterprise to be alone on bad soil; At the same time, it also needs the intervention of external professionals to give support and cooperation in effectively promoting compliance construction.
