An Empirical Study Of Local Regulation Of Illegal Financial Activities

In the early days,illegal financial activities were repeatedly prohibited in various places across the country,which had a considerable impact on social stability,and in order to maintain the stability of local finance,since 2015,both the central and local governments have successively issued a series of documents and regulations to transform the once financial office into the present-day local financial supervision and management agency,and its name,composition,powers and responsibilities have undergone great changes.In the Fifth National Financial Work Conference in 2017,it was clearly proposed that local governments should be given relevant financial supervision responsibilities.Under the above background environment,the Regulations on Local Financial Supervision and Management in Sichuan Province came into being in 2019,and various local financial regulatory bodies in Sichuan Province have been uprooted one after another.Since the Regulations on the Supervision and Administration of Local Finance in Sichuan Province has entered its fourth year,the regulation of illegal financial activities in Sichuan Province needs to be further studied.Therefore,this paper will be divided into the following five parts.The first part is the introduction.On the basis of the background of the study,we summarize the current recommendations of scholars on how to carry out the regulation of illegal financial activities;we explain in detail that the data of this paper comes from the first-hand written information obtained from the author’s visits to local financial regulatory agencies and local financial organizations in some cities,states,districts and counties in Sichuan Province,using open-ended interviews with relevant staff,and also collecting the second-hand Written materials.The second part is a normative analysis of the current regulation of illegal financial activities.It mainly involves the establishment of two provisions of the Regulations on the Supervision and Administration of Local Finance in Sichuan Province and the Regulations on the Prevention and Disposal of Illegal Fund Raising.The main body of supervision for illegal financial activities is vertically supervised by the original one line and three committees,and with the innovation of local financial business and the increase of illegal financial activities,for the central government has also successively delegated the financial supervision power to localities;in the discovery of illegal financial activities,the main body of discovery stipulated by law is very broad,covering local governments and all departments related to business,while the way to discover illegal financial activities is relatively In identifying illegal financial activities,the Regulations on Local Financial Supervision and Management of Sichuan Province do not clearly specify the ways of identification and the subjects of identification.In terms of how to deal with illegal financial activities,the Regulations on Local Financial Supervision and Administration in Sichuan Province and the Regulations on Prevention and Disposal of Illegal Fund Raising have large differences.Mainly mentioned in the main provisions and disposal means difference.The third part is the empirical analysis of the current regulation of illegal financial activities.In actual operation,the supervisory body of illegal financial activities is divided into three main bodies: the leading government agency,the leading department and the assisting department.In terms of the actual detection of illegal financial activities,local financial regulators lack efficient detection methods,and thus show the characteristics of "random".The discovery of illegal financial activities is more dependent on the public and other law enforcement officers to provide clues.In the actual identification of illegal financial activities,local financial regulators take the lead in convening relevant departments to share information and clues,and then conduct a "consultation" to determine whether it is illegal financial.In the actual disposal of illegal financial activities,local financial regulators lack enforcement power and therefore usually do not use the disposal means prescribed by law.In the fourth part,we analyze the phenomenon of dual-track system in the regulation of illegal financial activities.In the main body of illegal financial activities supervision,the split between the regulations of Sichuan Local Financial Supervision and the regulations of Prevention and Disposal of Illegal Fund Raising has led to a slightly awkward position of the main body of illegal financial activities supervision in law enforcement.In the discovery of illegal financial activities,the lack of law enforcement support has led local financial regulatory agencies to rely only on reports from the public and staff to discover illegal financial activities.When identifying illegal financial activities,local financial regulators lack the authority to do so,so they have to "endogenously" equate themselves with the lead department for preventing and disposing of illegal fund raising.When dealing with illegal financial activities,in order to recover the stolen goods and avoid crowd runs,and because of the lack of corresponding law enforcement processes,local financial regulators will join with other departments and use the power of other departments to deal with organizations that conduct illegal financial activities.Is a legislative improvement proposal for illegal financial activities.It is required to increase the administrative establishment of local financial regulatory bodies at district and county levels,to equip them with sufficient law enforcement forces,to clarify the types of illegal financial activities,and local governments should formally issue a document identifying local financial regulatory bodies as the lead department of the working mechanism for preventing and disposing of illegal fund-raising,designate the implementation rules for law enforcement,and delegate some of the penalty powers to local financial regulatory bodies at city and state levels.