Research On The Problem Of Illegal Fundraising Crime Governance

With the rapid development of economy,China's economic strength continues to increase and the scale of private financing continues to expand.However,the financial market is faced with many unfavorable factors such as insufficient innovation and narrow channels for capital appreciation,leading to the increase of illegal fundraising cases.This has affected social stability to a certain extent and has also brought difficulties to the work of government and judicial departments.On March 5,2019,in the government work report,Premier Li Keqiang clearly stated that "We will improve the multidimensional crime prevention and control system,and intensify the special campaign to root out organized crime and local mafia.We will,in accordance with law,punish illegal and criminal offenses such as theft,robbery,fraud,pornography,gambling,and drug-related crime,crack down on economic crimes like illegal fundraising and pyramid schemes,and tackle prominent problems such as the abuse of personal information.In short,we will make every effort to ensure that our people live in peace and safety." Therefore,the research on illegal fundraising governance has both important theoretical significance and practical value for maintaining the order of market economy and promoting harmonious development of society.Recently,illegal fundraising has seen a spurt of growth due to the trend of financial innovation.The ever-changing methods of committing illegal fundraising make it extremely confusing.Moreover,the Internet enables illegal fundraising to spread faster,cover a larger area,sell products more conveniently,and transfer funds more quickly,speeding up the spread of risk.Data show that in the first half of 2019,there were 2,978 new illegal fundraising cases nationwide,increasing by 18.5%year-on-year;the amount involved was up to 220.45 billion yuan,increasing by 128.8%year-on-year.As for city D,from 2015 to 2019,it has accepted a total of 581 cases and 357 cases are under investigation,involving about 34.2 billion yuan and 163,000 people or so totally.Based on the introduction and analysis of illegal fundraising cases of company H in city D,this paper studies the features,status quo,hazards,causes,and difficulties in the governing process of illegal fundraising and so on,and actively provides countermeasures.This paper is divided into five parts.The first part is the introduction.First of all,this part puts forward the background and value of this paper;secondly,it explains the current status of domestic and foreign research on illegal fundraising governance;finally,it presents the thinking process and research methods.The second part is the definition of the concepts related to illegal fundraising and the theoretical basis applied to this research.It introduces the connections and differences between illegal fundraising and private lending,and elaborates illegal fundraising crimes.The third part mainly takes company H in city D as an example to specifically analyze the situation and features of illegal fundraising in city D,and further explores the hazards and causes of illegal fundraising and illustrates the development trend of illegal fundraising.The fourth part is about China's illegal fundraising governance,the function of governing institutions and the difficulties in the current stage.Starting from the methods and paths of the illegal fundraising governance in city D,combining the three stages of China's legislation to combat illegal fundraising crimes,the paper presents the current difficulties and causes for illegal fundraising governance from five levels:legal level,financial supervision level,mass level,governance institution level,and legal supervision level.First of all,at the legal level,relevant laws and regulations are lagging or even absent;secondly,in the financial system,fast-growing small and medium-sized enterprises are facing financing difficulties;thirdly,at the mass level,most people are weak in risk prevention awareness;fourthly,in terms of governance institutions,the joint force of illegal fundraising control has not yet formed;fifth,at the legal supervision level,there are restrictions on the functions of relevant government departments.In the fifth part,according to the predicaments and causes analyzed above,combining with the current development trend of illegal fundraising in China,specific countermeasures and suggestions are proposed for improving and advancing illegal fundraising governance.Firstly,speeding up the formulation and improvement of relevant laws;secondly,improving the financial system and expanding financing channels for small and medium-sized enterprises;thirdly,strengthening public opinion guidance and publicity,and raising people's awareness of the legal system and risk prevention;fourth,forming a socially collaborative force in the fight against illegal fundraising groups;fifth,optimizing the functions of government departments,integrating resources and establishing a comprehensive supervision system.