Theoretical And Practical Researches On Criminalization Of Non-formal Financing

Non-formal financing in China has not yet have an official definition. It isgenerally believed that Non-formal financing, being outside the formal nationalregulatory system, is financial activities that are carried out by people spontaneously.Or we might call it "grassroots finance." Non-formal financing has a long history and ithas increased in large scale in recent years, but under the surface of a prosperous,illegal fund-raising activities also has its dark side. With economic meltdown, thecollapse phenomenon intensified over the Non-formal financing of illegal fund-raisingactivities. In Zhejiang Province, in the year of2006, the number of illegal depositsis23, but6years later in2012it has risen to335, an increase of nearly14times. Inthis context, to explore ways to effectively manage the phenomenon of illegalfund-raising Non-formal finance and the situation is needed. Therefore, the authoranalyzes Zhejiang model to investigate the status of Non-formal financing in theregion.Based on Zhejiang court criminal cases in recent years, it did statisticalanalysis of group Non-formal lending trial cases and it found that the currentNon-formal financing incriminating acts in the Legislative and Judicial practice. Thedevelopment of China’s Non-formal finance need effective protection under the sun. This text is divided into three chapters:The first chapter investigated the Criminalization of Non-formal financing.Firstly, The author discussed Non-formal financing in Zhejiang Province: the scale,the main manifestations, etc. were introduced, and reveals its basic features. Theauthor also discusses the economic and social Non-formal financing brought bothpositive and negative effects.Secondly, in recent years, Zhejiang court heard severalcriminal cases and civil goup fund raising cases. The author gave a list of waysthrough the analysis and comparison of the two cases and the trend toward basicfeatures.The second chapter is Non-formal financing inadequate legislation incriminatingbehavior and its reflection. It is pointed out that the incriminating act on Non-formalfinancing is at two levels. First legislative level is on the existence of financiallegislation lags behind, criminal legislation radical defect; secondly operation injudicial practice, is also facing criminal justice policy impact, Criminal and Civilprominent cross-cutting issues, the trial there many problems such as difficulties;finally from a cognitive level, now both in the legislative sector, the judiciary, or theordinary masses, there are different cognitive problems.The third chapter is convicted of acts of Non-formal finance regulationcountermeasures. A legal system to improve the Non-formal financing, to build acomplete regulatory model; Second, we must strictly positioned raising classconstitute a crime, the development of rational criminal justice policy-oriented;Third, we must raise awareness of risk prevention, the establishment of riskprevention system; Fourth, we must broaden the investment and financing channels,a reasonable guide private capital flows.