ICBC has recently signed the Cooperation Memorandum on Implementing Joint Reward and Punishment Measures (the “Memorandum”) with the National Development and Reform Commission (NDRC) in Beijing, becoming the first enterprise in China to sign the contract with NDRC regarding risk information sharing. According to the Memorandum, a dedicated network information transmission line will be established between national credit information sharing platform and ICBC, through which both parties can realize real-time sharing of “red and black lists” for joint reward/punishment and other credit information and boost the implementation of joint incentive measures for honesty and joint punishment measures for dishonesty, providing strong support to the development of social credit system.

The national credit information sharing platform is the “master hub” for credit information sharing, which is built by the State Information Center under the leadership of NDRC. It has more than 310 million pieces of information related to punishment/incentive for dishonesty/honesty of enterprises and individuals, covering all provinces, cities and autonomous regions. The information can be obtained, processed, correlated, mined, restructured, analyzed and directly used for business through ICBC’s external fraud risk information system, promoting the implementation of joint incentive and reward/punishment measures.

An executive with ICBC said that ICBC took the lead in China in creating the “external fraud risk information system” in 2013 and conducted risk information sharing cooperation with more than ten organs such as the Supreme People's Court of PRC and Ministry of Public Security. The sharing and updating of risk information of the corporation, individual and account in violation of laws and regulations has fueled the implementation of joint punishment measures for dishonesty in the financial sector and delivered remarkable results. In addition, ICBC has used the system to intercept remittance to telecommunication fraud related accounts on the “blacklist”. By the end of April, 76,000 remittances have been intercepted, recovering losses of RMB one billion for customers.