Criminal liabilities are only imposed in extreme circumstances (e.g., where national security, public interest or financial market stability is threatened or where there are other serious consequences).

However, a breach of the outsourcing requirements described above can result in administrative sanctions, including but not limited to (i) a warning, (ii) a compulsory order from the China Banking and Insurance Regulatory Commission ("CBIRC") or its local counterparts to rectify and adopt remedial measures, (iii) fines, and (iv) in serious cases, revocation of a financial operating permit.

Additionally, if a financial institution infringes individuals' rights and interests as a result of noncompliance with the relevant outsourcing requirements, it will incur civil liability toward those individuals.

In addition, if the CBIRC or its local counterpart considers that the risk associated with a regulated outsourcing arrangement is substantial, it may take certain regulatory actions. These may include a suspension order.