Interim Provisions of the Disciplinary Inspection Organs of the Communist Party of China on the Management of Funds and Property Involved in Case Handling

Central Commission for Discipline Inspection Document No. 32 [2008]

(October 15, 2008)

Chapter I General Provisions

Article 1: In order to standardize the management of funds and property involved in cases handled by the disciplinary inspection organs of the Communist Party of China (hereinafter referred to as the discipline inspection organs), these Provisions are formulated in accordance with the Regulations on Disciplinary Sanctions of the Communist Party of China, the Regulations on Case Investigation Work of the Discipline Inspection Organs of the Communist Party of China, and other internal Party regulations, taking into account the actual practices of discipline inspection organs in handling cases.

Article 2: For the purposes of these Regulations, “funds and property involved in a case” refers to funds and property that can substantiate disciplinary or legal violations, as well as proceeds derived from such violations. This includes cash, negotiable securities, payment instruments, real estate, gold and silver jewelry, cultural relics and antiques, calligraphy and paintings, furniture, electrical appliances, vehicles, communication devices, and the like.

Article 3: These Provisions shall apply to the temporary detention and sealing of funds and property involved in cases investigated by disciplinary inspection organs, as well as to their transfer, custody, and disposition.

Article 4: The management of funds and property involved in a case must be conducted in strict accordance with disciplinary and legal provisions, ensuring accuracy and timeliness, proper custody, appropriate disposition, and complete documentation.

Article 5: Disciplinary inspection organs shall strengthen the management and oversight of funds and assets involved in cases, while relevant departments shall perform their respective duties, coordinate with one another, and exercise mutual oversight.

Article 6 No department or individual may, without authorization, use or dispose of funds or property involved in a case.

Chapter II Temporary Detention and Seizure of Funds and Property Involved in the Case

Article 7: When the case‑investigation department or the investigation team temporarily seizes or seals off funds and property involved in a case, it shall complete the Form for Approval of Temporary Seizure and Sealing of Case‑Related Funds and Property. Such action shall be implemented only after review by the head of the case‑investigation department or the investigation team and approval by the responsible leader of the disciplinary inspection organ.

In cases of emergency or other special circumstances, with review and approval by the case‑inspection department or the head of the investigation team, enforcement may be carried out in advance; however, the requisite approval procedures must be completed within ten working days after such enforcement.

Article 8: The case-handling personnel responsible for implementing measures to temporarily seize and seal off funds and items involved in a case shall number no fewer than two. During execution, they shall, together with the original holder or custodian of the funds and items and with witnesses, conduct an on-the-spot, item-by-item inventory of the temporarily seized and sealed‑off funds and items, complete the Registration Form for Temporarily Seized and Sealed‑Off Funds and Items on the spot, and have the form signed or sealed by the case-handling personnel, the original holder or custodian, and the witnesses, respectively.

If the original holder or custodian of the items is unable or refuses to sign or affix a seal on the registration form, the case-handling officer shall state the reason.

Article 9: With respect to gold, silver, jewelry, cultural relics, antiques, calligraphy and paintings, and other valuable items temporarily detained, except where on-the-spot photography, videography, or the preparation of interview records is required, the case‑investigation department or the investigation team shall promptly commission a professionally qualified appraisal institution designated by the disciplinary inspection authority to conduct an appraisal and issue an appraisal report. The appraisal results shall be promptly communicated to the holder or custodian of the original items.

Where, for special reasons, an appraisal cannot be conducted promptly, the relevant items may first be sealed and stored, with the appraisal carried out when conditions permit. The costs of such appraisal shall be charged to the case-handling budget.

If the holder or custodian of the original item objects to the qualifications of the appraisal institution or to the appraisal results and requests a re‑appraisal, a new appraisal may be conducted upon approval by the case‑review department or the head of the investigation team.

Article 10: During the course of an investigation, with respect to funds or property that have been determined not to constitute proceeds of disciplinary or legal violations, or for which no such violations can be substantiated, the temporary detention or sealing measures shall be promptly lifted upon approval by the responsible leading official of the discipline inspection organ. The case‑handling department or the investigation team shall complete a list of funds and property released from temporary detention or sealing, and return such funds and property to their original holders or custodians. Upon return, a face-to-face inventory shall be conducted in accordance with the list, and receipt procedures shall be duly executed.

Chapter 3: Transfer of Funds and Property Involved in the Case

Article 11: After the case‑review department or the investigation team has taken temporary measures to seize and seal the funds and property involved, it shall promptly complete the handover procedures with the financial (custodial) department of the disciplinary inspection authority.

If, for special reasons, timely handover is not possible, with the approval of the responsible leader of the disciplinary inspection organ, the case may be temporarily held by the case‑review department or the investigation team; however, handover procedures must be completed within ten working days after the special circumstances have been resolved.

Article 12: Prior to the handover procedures between the case‑inspection department or investigation team and the financial (custodial) department of the disciplinary inspection authority, a designated person must be assigned to assume responsibility for the centralized safekeeping of funds and assets involved in the case.

Article 13: Where it is genuinely difficult to transfer seized or sealed‑up funds and items in another jurisdiction, with the approval of the head of the case‑review department or the investigation team, such items may be entrusted to the local disciplinary inspection authority or department for safekeeping. The case‑review department or the investigation team shall issue a letter of authorization and complete handover procedures with the entrusted entity. The inventory of transferred funds and items shall be filed with the joint case supervision and management department or other relevant competent authorities.

Article 14: When transferring and taking custody of funds and items involved in a case, there shall be no fewer than two personnel present from both the case-handling officer and the custodial staff. The case-handling officer shall complete a handover list for temporarily detained and sealed‑off funds and items involved in the case; after being signed by the head of the case‑review department or the investigation team, the handover shall be effected with the custodial staff. The custodial staff shall verify each item of the transferred funds and items individually; upon confirming their accuracy, both parties shall sign the handover list.

Chapter Four: Custody of Funds and Property Involved in the Case

Article 15: Funds and property involved in cases shall be kept under centralized, unified custody by the financial department of the disciplinary inspection organ.

In disciplinary inspection organs that have not established a financial department, funds and assets involved in cases shall be entrusted to the local fiscal authorities for unified custody. Items related to the case shall be centrally and uniformly kept by a department designated by the disciplinary inspection organ.

Article 16: Funds and assets involved in cases shall be entrusted to the financial department of the disciplinary inspection organ that dispatched the stationed (or dispatched) institution for unified custody; items related to the case shall be centrally and uniformly kept by the stationed (or dispatched) institution.

Where local discipline inspection organs’ stationed (or dispatched) agencies encounter difficulties in centrally and uniformly safeguarding items involved in cases, such items may be uniformly kept by the financial department of the sending discipline inspection organ.

Article 17: The finance (custody) department shall establish a dedicated account and a designated facility, strictly follow procedures for the handover of funds and items involved in the case, and assign a specific person to ensure their proper safekeeping, thereby preventing damage or loss.

Article 18: The finance (custody) department shall, upon verifying the accuracy of the funds and assets involved in a case transferred by the case‑inspection department or the investigation team, issue a special receipt to the officer responsible for handling the transfer of such funds and assets.

The finance (custodial) department shall maintain a detailed ledger for funds involved in the case, promptly deposit such funds into a dedicated bank account, and strictly adhere to established receipt and disbursement procedures.

Article 19: The finance (custody) department shall maintain records and issue identification cards for items involved in a case, clearly indicating the case name, item description, date of transfer, and the responsible personnel, ensuring that each case has its own record and each item has its own card.

Small items may be tagged by category, item, or container. Large items shall be stored in a centralized location or entrusted to the relevant specialized department for sealed storage. Valuable small items must be placed in transparent bags and sealed. For vehicles, communication devices, and other items requiring regular maintenance, routine upkeep should be carried out to prevent damage.

Bulk and special items shall be sealed and stored under the supervision of the relevant specialized departments. Hazardous and prohibited items shall, in accordance with applicable regulations, be promptly turned over to the competent authorities, or, as required by the investigation, strictly sealed; they may not be used or disseminated under any circumstances.

Items that are not suitable for long-term storage may, after consultation with the original holder or in accordance with relevant state regulations and with the approval of the case‑review department or the head of the investigation team, be promptly entrusted to a designated agency for sale or auction. The proceeds shall be handled in accordance with Article 18 of these Regulations, and a list, photographs, and the results of the sale or auction shall be filed in the case file. The entrustment procedure must be conducted strictly in compliance with the applicable provisions.

Storage fees and any related expenses incurred during the storage period shall be charged to the case-handling budget.

Article 20: Coins, negotiable securities, payment instruments, and other items that bear digital or other distinctive features and can substantiate the facts of the case shall be sealed and kept as physical evidence, with their characteristics, serial numbers, types, denominations, quantities, and monetary values clearly recorded.

Article 21: When the case‑review department or the investigation team transfers a case, or when, for the purposes of the case, it needs to retrieve funds or items that have been temporarily seized or sealed, such action shall be subject to written approval by the responsible leader of the disciplinary inspection organ. Upon opening sealed funds or items, the case handler and the custodial staff shall be present simultaneously to conduct an on‑site inspection. Upon return, the items shall be resealed, and both parties shall sign the seal.

Chapter Five: Disposition of Funds and Property Involved in the Case

Article 22: When the case‑investigation department transfers a case to the case‑review department, it shall set forth in the investigation report the quantity, value, and storage status of the funds and property involved, submit recommendations for their disposition, and attach a list of such funds and property.

During the adjudication of a case, the adjudicating department shall review whether the funds and property listed in the investigation report correspond to those set forth in the accompanying inventory, and whether the relevant procedures are complete, and shall set forth its recommendations regarding the disposition of such funds and property in the adjudication report.

Article 23: After the disposition of funds and property involved in a case has been submitted to the Standing Committee of the Commission for Discipline Inspection at the same level (or, where no Standing Committee exists, to the Commission’s meeting) for deliberation and decision, the case-handling department shall promptly notify, in writing, the case‑investigation department, the case‑supervision and management department, or other relevant functional departments. The case‑investigation department shall, in consultation with the agency’s finance (custodial) department, complete execution within sixty days of receipt of such notice.

Article 24: Where, following a preliminary review, it is determined that no case shall be filed, the funds and property involved that have been voluntarily turned over by the subject of the preliminary review, or that should be recommended to the relevant Party organization or unit for disposal through an order requiring the subject to return such funds and property, shall be subject to written disposition recommendations submitted by the case‑investigation department and processed upon approval by the responsible leading official of the disciplinary inspection organ.

Article 25: When disciplinary inspection organs confiscate funds and property involved in a case, such confiscation shall be carried out after the Standing Committee of the Commission for Discipline Inspection (or, where no Standing Committee exists, the relevant meeting of the Commission) has made a decision to confiscate. The case‑investigation department shall complete a list of the confiscated funds and property, while the finance (custody) department shall issue a receipt or voucher uniformly printed by the financial authorities. Two handling officers shall be responsible for promptly delivering the confiscated funds and property to their original holders or custodians. Upon delivery, the original holder or custodian shall sign or affix a seal on the list.

If the original holder or custodian of the funds or items involved in the case refuses to sign or affix a seal, the case handler shall record the reason.

Article 26: With respect to funds and property involved in a case that have been temporarily seized or sealed pursuant to an order for restitution, after the Commission for Discipline Inspection’s Standing Committee (or, where no Standing Committee exists, the Commission’s meeting) has adopted a decision ordering restitution, the case‑investigation department shall complete a list of the funds and property subject to the restitution order, promptly serve it, and obtain the signature or official seal of the head of the entity responsible for restitution or of the person making the restitution.

If the head of the unit responsible for restitution or the person making the restitution refuses to sign or affix a seal, the case handler shall record the reason.

Article 27: Proceeds derived from disciplinary or legal violations that are required to be turned over shall, in accordance with the amounts specified in the disposition decision, be promptly remitted to the state treasury by the financial (custodial) department of the disciplinary inspection organ.

Negotiable securities and payment instruments shall, after being cashed by the financial (custodial) department of the agency through the relevant authorities, be processed in accordance with the provisions of the preceding paragraph.

For disciplinary and illegal items disposed of through auction or other public means by authorized agencies, the agency’s financial (custodial) department shall be responsible for case‑by‑case registration and record‑keeping, and for completing the Registration Form for the Transfer and Disposal of Case‑Related Funds and Property. Proceeds from such disposal shall be remitted to the state treasury.

Article 28: Any funds or property that, in accordance with the law, should not be returned or compensated during the process of confiscation or ordering restitution, or that cannot be returned or compensated due to objective reasons, shall be turned over to the State Treasury.

Article 29: With respect to funds and property that have been temporarily detained or sealed and are to be turned over to the state treasury or returned to the relevant entities or individuals, any accrued interest shall be turned over or refunded concurrently.

Article 30: Where case-related funds and property are entrusted to another disciplinary inspection organ or department for safekeeping, the case‑investigation department shall promptly notify the entrusted custodial unit in writing of its recommendations regarding the disposition of such funds and property, and shall, in accordance with those recommendations, take the appropriate measures to handle the temporarily detained or sealed‑off case‑related funds and property. The outcome of such disposition shall be reported in writing to the joint case supervision and management department or other relevant competent authorities for record‑keeping purposes.

Article 31: In cases referred to the judicial authorities or other competent authorities for handling, the涉案 funds and items that have been temporarily seized or sealed shall be transferred together with the corresponding inventory list and proof of disposition, and handover procedures shall be completed.

Chapter VI Supervision and Inspection of Funds and Property Involved in Cases

Article 32: Disciplinary inspection organs shall strengthen oversight and inspection of the management of funds and assets involved in cases, and improve mechanisms for supervision and checks and balances.

Article 33: The case supervision and management department, or other relevant functional departments, shall conduct regular inspections and oversight of the use of official documents and the handling of formalities in the course of management, as well as the custody and disposition of funds and property involved in the case, and shall periodically submit special reports on these matters to the leadership of the disciplinary inspection organ at the same level.

Article 34: With respect to the designation of appraisal and auction institutions for funds and property involved in a case, if the disciplinary inspection organs have established relevant provisions, such provisions shall be followed; if no such provisions exist, the case supervision and management department or other relevant functional departments shall, after conducting a comprehensive assessment based on the institution’s qualifications, credentials, and level of professional expertise, make the designation.

Article 35: The case supervision and management department or other relevant functional departments shall conduct inspections of case files to ensure that all documents pertaining to the handling of funds and property involved in the case are filed.

Article 36: The documents and forms used in the management of funds and property involved in a case shall be uniformly supervised and produced by the case supervision and management department or other relevant functional departments.

Article 37: With respect to funds and property involved in a case that have been transferred to the judicial authorities and subsequently determined by such authorities to be unrelated to the crime, the case supervision and management department or other relevant functional departments shall urge the judicial authorities to return them.

Chapter 7: Disciplinary Liability

Article 38: With respect to any violations of regulations discovered during supervision and inspection, the case supervision and management department or other relevant functional departments shall order rectification. For cases of failure to rectify, the disciplinary inspection organs shall issue public criticism. Where disciplinary violations are involved, the responsible leading officials and directly liable personnel shall be held accountable in accordance with disciplinary rules.

Article 39: Any department or individual who, in the management of funds and property involved in a case, violates relevant provisions by embezzling, misappropriating, withholding, diverting, privately dividing, secretly keeping, exchanging, lending out, or purchasing such funds and property—and any proceeds derived therefrom—at undervalued prices shall be held accountable for disciplinary violations, with responsibility resting on the relevant supervisory personnel and those directly responsible.

Article 40: Where case-related funds or property are damaged or lost due to improper custody, in addition to compensation in accordance with relevant state regulations, disciplinary accountability shall be pursued against the responsible supervisors and directly liable personnel, depending on the severity of the circumstances.

Article 41: Where failure to transfer case-related funds and property on time, or failure to promptly implement decisions regarding their disposition, results in adverse consequences or other serious repercussions, the relevant responsible officials and directly liable personnel shall be held accountable under disciplinary measures.

Chapter VIII Supplementary Provisions

Article 42: These Provisions shall apply to disciplinary inspection organs at or above the county level and their dispatched (or stationed) institutions.

The Commission for Discipline Inspection of the Central Military Commission may, by reference to these Provisions, formulate relevant regulations and submit them to the Central Commission for Discipline Inspection for record.

Article 43: All documents and forms required to be completed under these Regulations shall be submitted to the Case Supervision and Management Department or other relevant functional departments for record‑keeping and filed in the case file.

Article 44: These Provisions shall be interpreted by the Central Commission for Discipline Inspection.

Article 45: These Provisions shall enter into force as of the date of their promulgation. Any prior provisions concerning the administration of funds and property involved in cases that are inconsistent with these Provisions shall be superseded by these Provisions.