China's five ministries launch crackdown on fraud in ecological environment technical services

Beijing, September 21 — The Ministry of Ecology and Environment, together with the Supreme People's Court, the Supreme People's Procuratorate, the Ministry of Public Security, and the State Administration for Market Regulation, has recently issued a notice titled "Notice on Continuously Strengthening the Supervision of Ecological Environment Technical Service Institutions and Intensifying the Rectification of Fraudulent Practices" (hereinafter referred to as the Notice).

The Notice emphasizes the following guiding principles:

• Problem-oriented approach with a priority on technical prevention, strengthening technological empowerment and source control.
• Precision governance and normalized rectification, establishing long-term regulatory mechanisms.
• Coordinated action and pooled efforts, enhancing cross-regional and cross-departmental collaboration.
• Law-abiding guidance with a balance of leniency and severity, strictly punishing malicious violations while strengthening compliance assistance.

The Notice focuses on three key tasks: promoting full-domain supervision, intensifying law enforcement and case handling, and using cases to drive reform. It outlines 11 specific measures across four areas: expanding sources of problem clues, increasing case investigation and punishment efforts, improving coordination and synergy, and refining regulatory enforcement systems.

Expanding Sources of Problem Clues

The Notice calls for leveraging digital and smart technologies, including big data and artificial intelligence, to enhance early warning capabilities for abnormal data. It promotes non-intrusive and penetrating supervision, and strengthens the connection and transition between off-site and on-site enforcement. It also encourages expanding channels for problem clues, streamlining whistleblower reporting mechanisms, and establishing and improving reward systems to encourage public oversight.

Increasing Case Investigation and Punishment Efforts

The Notice stresses the need to "target the source, dismantle hubs, destroy networks, and break chains" in cracking down on fraudulent technical service institutions and individuals. It calls for simultaneous punishment of upstream and downstream related enterprises, achieving "multi-case investigation and full-chain accountability." It also requires review and re-inspection of rectification measures taken by previously penalized institutions to prevent recurrence. Greater guidance will be provided for major and significant cases, using special case supervision, upgraded case handling, and joint case supervision mechanisms.

Improving Coordination and Synergy

The Notice specifies the need to improve joint inspection and joint case-handling mechanisms, making technical service institutions key targets for cross-departmental "double random, one public" inspections. It promotes regional law enforcement assistance, deepens coordination between law enforcement and judicial bodies, and establishes information-sharing and coordination mechanisms. It also calls for the classification of technical service institutions under a credit management system to implement differentiated supervision.

Refining Regulatory Enforcement Systems

The Notice requires enhanced research on the application of the Ecological Environment Code of the People's Republic of China, the Regulations on Ecological Environment Monitoring, and relevant judicial interpretations by the Supreme People's Court and the Supreme People's Procuratorate, to unify legal application in similar cases. It also mandates strict industry access and exit controls, strengthening qualification certification and registration management in areas such as ecological environment monitoring and motor vehicle and vessel emission testing. Detailed provisions will be made to prohibit fraudulent actors from practicing in the industry, tightening the entry threshold.

Implementation Requirements

The Notice calls on all regions and departments to strengthen organizational leadership, standardize inspection procedures, provide guidance and support, and manage public opinion. It requires strict compliance with administrative inspection requirements for enterprises, enhanced legal education and compliance assistance, and guidance for industry self-discipline, all in support of high-quality economic and social development through high-level ecological environmental protection.

This article is compiled from the "市说新语" WeChat public account. Editor: Chen Wenfang (Zhito Finance).