The Financial Supervisory Commission announced deficiencies in financial inspections in the first half of 2026: focusing on four major areas

The Financial Supervisory Commission pointed out that the main inspection deficiencies in the first half of 2026 covered 10 industries including financial holding companies, mainly focusing on four major areas, including "prevention of fraud, money laundering, combating financing of terrorism and anti-arms expansion", "consumer protection", "internal management" and "information security". Among them, the financial inspection found that when banks were applying for mortgage life insurance, they hinted that customers must buy it together, or persuaded customers to buy mortgage life insurance on the grounds of seeking lower interest rates.

Guo Wenlong, deputy director of the Inspection Bureau, said that in order to maintain the transparency of inspection operations, the Financial Supervisory Commission followed the "Guiding Principles for Financial Inspection" and today announced the main inspection deficiencies of financial institutions in the first half of this year. The content is to screen out deficiencies that are important systems or common in various industries, list them according to different business items, and describe improvement practices.

In the first half of 2026, the main inspection deficiencies covered 10 industries including financial holding companies. The main deficiencies were concentrated in four major areas. In terms of consumer protection, the Financial Supervisory Commission found that some financial institutions had the following problems:

First, there is no effective monitoring mechanism to detect early the situation where customers and financial specialists, recruitment channels or salespeople use the same mailing address.

Second, when applying for a mortgage loan, customers are not fully informed that they can decide whether to purchase mortgage life insurance, causing customers to mistakenly believe that purchasing mortgage life insurance is a necessary condition for obtaining a loan; there are also cases where customers are persuaded to purchase mortgage life insurance on the grounds that they can obtain lower interest rates. The Financial Supervisory Commission stated that life insurance and loans are tied together, and customers must be persuaded to take out insurance.

Third, when handling fund advertising and marketing, relevant information or warnings were not disclosed in accordance with regulations, or a simplified fund prospectus was not prepared in accordance with regulations.

Fourth, accept purchases of bonds with loss-absorbing capacity (TLAC bonds) by non-professional investors, or recommend the purchase and sale of specific securities to customers who have not signed a promotion contract.

The Financial Supervisory Commission stated that the improvement measures for the above deficiencies include: in order to prevent financial management specialists or salespersons from misappropriating customer funds, a comparison mechanism should be established between customers and financial management specialists or salespersons' communication information; tying or improper solicitation of mortgage life insurance products is not allowed when handling mortgage business; sales funds should be included in advertising content in accordance with regulations Disclose relevant warnings or information, report profits and risks in a balanced manner, and prepare a simplified public prospectus for funds in accordance with regulations to implement the disclosure of financial consumption information; when handling the entrusted trading of foreign securities, you should explain possible risks to customers, sign a promotion contract with customers, and recommend suitable financial products in accordance with regulations.

In terms of "preventing fraud, money laundering, combating terrorism and countering arms expansion", the following include: First, some financial institutions did not re-examine the customer when the customer was changed from a preparatory office to a formal company. Therefore, it was not possible to discover in time that the company had the abnormal characteristics of a capitation company account opening announced by the Police Department. Moreover, the company was successively notified by the 165 joint defense mechanism shortly after opening an account.

Second, after some customers applied to use virtual accounts, they were frequently reported as warning accounts, and the amount of collected transactions increased significantly, but the financial institution did not conduct further inspections; there were also cases where the customer's identity was not confirmed before providing services. Third, after receiving a notification from the police to alert the electronic payment account, the financial institution did not immediately notify the Joint Financial Credit Reference Center of the relevant information.

Fourth, some customers often use third parties to handle remittance transactions on their behalf, but financial institutions do not leave relevant information sufficient to prove the fact of agency. Fifth, legal person customers have repeatedly received warnings about suspected money laundering transactions, and the transaction patterns are inconsistent with the collection and payment situations of normal company operations, but the financial institution has not further understood the authenticity of the transactions and business dealings.

The Financial Supervisory Commission stated that financial institutions should carefully review customers when opening accounts. If they find suspected capitation accounts or fake bank numbers, they should refuse to open an account.

The Financial Supervisory Commission stated that by regularly announcing major inspection deficiencies and improvement practices of financial institutions, it hopes to help financial institutions grasp the focus of supervision, proactively check whether there are areas that need to be strengthened in their own operations, and further improve operating procedures and internal control mechanisms.