Hainan issues measures for handling housing provident fund fraud claims and loan fraud behaviors

Hainan Provincial Housing Provident Fund Management Bureau

Notice on Issuance of the “Measures for Handling Fraudulent Withdrawal and Loan Fraud of Hainan Province Housing Provident Fund”

All municipal and county management centers, departments:

The “Measures for Handling Fraudulent Withdrawal and Loan Fraud of Hainan Province Housing Provident Fund” have been approved at the second plenary session of the fifth Hainan Housing Provident Fund Management Committee. It is now issued and will be implemented from May 1, 2026. Please implement accordingly.

Hainan Provincial Housing Provident Fund Management Bureau

April 1, 2026

Measures for Handling Fraudulent Withdrawal and Loan Fraud of Hainan Province Housing Provident Fund

Chapter 1 General Principles

Article 1 To standardize the management of housing provident fund across the province, strictly combat fraudulent withdrawal and loan behaviors, ensure the safety of housing provident fund funds, safeguard the legal rights and interests of depositors, and promote the construction of a social credit system, these measures are formulated in accordance with the “Regulations on the Administration of Housing Provident Fund,” the “Notice of the Ministry of Housing and Urban-Rural Development, the Ministry of Finance, the People’s Bank of China, and the Ministry of Public Security on Carrying Out the Governance of Violations in Housing Provident Fund Withdrawal” (Jianjin [2018] No. 46), and other laws, regulations, and policies, combined with the actual situation of this province.

Article 2 These measures apply to the handling of fraudulent withdrawal and loan behaviors within the administrative region of this province. The Hainan Provincial Housing Provident Fund Management Bureau (hereinafter referred to as the Provincial Housing Provident Fund Bureau) is responsible for the identification, investigation, handling, and recovery of illegal funds related to fraudulent withdrawal and loan fraud.

Article 3 The behaviors of applying for housing provident fund withdrawal or loans must comply with the “Housing Provident Fund Management Regulations” issued by the State Council and other relevant laws, regulations, and policies of the provincial housing provident fund bureau. Parties shall ensure that the submitted materials are legal, authentic, and valid, be responsible for the authenticity and legality of the materials, and bear corresponding legal liabilities.

Chapter 2 Identification of Fraudulent Withdrawal and Loan Fraud

Article 4 The term “fraudulent withdrawal” refers to behaviors that violate the management regulations of housing provident fund withdrawal, using deception to withdraw the balance of one’s own or others’ housing provident fund accounts. Specifically include:

(1) Using false information, false materials, or concealing true information to withdraw housing provident fund;

(2) Withdrawing housing provident fund through fictitious housing consumption behaviors;

(3) Using means such as multiple changes in marital status by the same person to buy a house, or frequent buying and selling of the same house by multiple people to fraudulently obtain housing provident fund;

(4) Making false promises during the process of handling business under the commitment system to withdraw housing provident fund;

(5) Forcibly deducting housing provident fund through false litigation;

(6) When reviewed by relevant departments, the withdrawal amount exceeds policy limits, and after the Provincial Housing Provident Fund Bureau orders a refund, the party still refuses to refund, it is deemed as fraudulent withdrawal;

(7) After withdrawing housing provident fund, if the house registration is revoked and the withdrawn funds need to be returned, and the party still refuses to refund after the Provincial Housing Provident Fund Bureau orders a refund, it is deemed as fraudulent withdrawal;

(8) Other behaviors that violate national and provincial policies on housing provident fund withdrawal and involve deception to withdraw funds.

Article 5 The term “loan fraud” refers to behaviors that violate the management regulations of housing provident fund loans, applying for or obtaining housing provident fund personal housing loans (including housing provident fund interest-subsidized loans, hereinafter referred to as housing provident fund loans) through deception. Specifically include:

(1) Applying for or obtaining housing provident fund loans using false information, false materials, or concealing true information;

(2) Applying for or obtaining housing provident fund loans through fictitious real estate transactions;

(3) Investigation shows that the purpose of the loan does not meet regulations or funds are not used as prescribed;

(4) After review by relevant departments, the loan term or amount exceeds policy limits, and after the Provincial Housing Provident Fund Bureau orders rectification, the party still refuses to rectify, it is deemed as loan fraud;

(5) After obtaining housing provident fund loans, if the house registration is revoked and the loan needs to be settled, and the party still refuses to settle after the Provincial Housing Provident Fund Bureau orders repayment, it is deemed as loan fraud;

(6) Other behaviors that violate national and provincial policies on housing provident fund loans and involve deception to apply for or obtain such loans.

Chapter 3 Handling of Fraudulent Withdrawal and Loan Fraud

Article 6 When the Provincial Housing Provident Fund Bureau discovers suspected fraudulent withdrawal or loan fraud behaviors, it shall retain all application materials and information, conduct policy publicity and education, inform the parties to suspend related business processing, simultaneously suspend online service channels, and carry out preliminary verification.

Article 7 Based on the preliminary verification, the Provincial Housing Provident Fund Bureau shall decide whether to file a case. If a case is filed, a comprehensive investigation shall be conducted, relevant evidence collected and retained, and offline business channels for the parties further suspended; if not, the relevant housing provident fund business shall continue to be handled according to procedures, and online channels restored.

Article 8 The Provincial Housing Provident Fund Bureau shall make a decision within 90 days from the date of case filing. For complex cases, the period may be extended by 60 days. If laws, regulations, or rules specify otherwise, those provisions shall prevail.

Article 9 During the investigation, relevant units and parties shall cooperate. If they refuse to cooperate or cannot be contacted, the Provincial Housing Provident Fund Bureau may determine facts based on the verified information.

Article 10 After investigation, the Provincial Housing Provident Fund Bureau shall make a handling decision based on the verification results:

(1) If fraudulent withdrawal or loan fraud is not established, the case shall be dismissed, the parties notified promptly, and relevant housing provident fund business handled according to procedures, with online and offline channels restored.

(2) If the facts are clear and evidence sufficient, a formal administrative decision shall be issued to the parties.

Article 11 Before making an administrative decision, the Provincial Housing Provident Fund Bureau shall notify the parties of the content, facts, reasons, and basis of the proposed decision, and inform them of their right to present opinions and defend themselves.

Article 12 Parties shall, within the prescribed period, submit statements and defenses, providing relevant facts, reasons, and evidence. The Bureau shall review the facts, reasons, and evidence provided, and adopt those that are substantiated. If the facts, reasons, or evidence are insufficient or not provided, they shall not be adopted, with reasons explained.

Article 13 After verification, the Provincial Housing Provident Fund Bureau shall prepare an “Administrative Decision” document, including:

(1) Basic information of the party, such as name and ID;

(2) Violations of laws, regulations, and policies regarding housing provident fund, facts, and evidence of fraudulent withdrawal or loan fraud;

(3) Content and basis of the administrative decision;

(4) Implementation method and deadline;

(5) Procedures and deadlines for administrative reconsideration or litigation;

(6) The housing provident fund management agency making the decision (stamped) and the date.

Article 14 The relevant legal documents shall be served in accordance with the “Civil Procedure Law of the People’s Republic of China.” The administrative decision shall take effect from the date of service.

Article 15 After confirming fraudulent withdrawal or loan fraud, the Provincial Housing Provident Fund Bureau may take one or more of the following measures:

(1) Criticism and education. If the fraudulent behavior is promptly stopped and the violation is minor, publicity and education shall be conducted;

(2) Order to refund within a deadline. The Bureau may order the party to refund the illegal funds in full within a specified period;

(3) Notify the employer of the party’s behavior. Depending on the severity of dishonesty, inform the employer or disciplinary and personnel departments;

(4) Conduct credit evaluation of housing provident fund. Record the fraudulent behavior in the credit management system and evaluate according to standards;

(5) Transfer to authorities for accountability. If the behavior involves discipline or law violations, the case shall be transferred to judicial or disciplinary authorities for handling;

(6) Share dishonesty information. Push dishonesty information to the Hainan Free Trade Port Credit Information Sharing Platform for reference by relevant government departments, and implement joint disciplinary measures as appropriate;

(7) For cases of fraudulent withdrawal, issue a legal notice to return the funds within a deadline. If refused, the party’s account balance shall be less than the unreturned amount before partial withdrawals (excluding those for offsetting loans or medical hardship withdrawals), and no further withdrawals (except for those for offsetting loans or medical hardship) shall be processed; if the balance exceeds the unreturned amount, withdrawals are only allowed within the excess;

(8) For cases of loan fraud, the Bureau may declare the loan due early, and the loan shall still count towards the number of housing provident fund loans; for interest-subsidized loans, the subsidy may be suspended, and the interest paid may be recovered;

(9) For confirmed loan fraud, issue a legal notice to return the funds within a deadline. If refused, the party shall not reapply for housing provident fund loans; upon recovery of the fraudulent loan, the approved loan amount shall be reduced by 10% for subsequent applications;

(10) For flexible employment personnel involved in fraudulent withdrawal or loan fraud, if not rectified after legal notice, they shall no longer enjoy subsidies or preferential policies for flexible employment depositors until rectification;

(11) Other lawful and compliant measures.

Article 16 If the party does not apply for administrative reconsideration or litigation within the legal period, and does not fully refund the illegal funds within the prescribed time, the Provincial Housing Provident Fund Bureau may apply for enforcement by the People’s Court in accordance with the “Administrative Enforcement Law of the People’s Republic of China.”

Article 17 For units and individuals providing false materials, fabricating withdrawal or loan conditions, or assisting in fraudulent withdrawal or loan fraud, upon investigation and verification, the Bureau may make one or more of the following decisions based on the severity:

(1) Public disclosure of dishonesty information via media. For units, disclose the dishonesty information through official websites, newspapers, TV, etc., depending on the severity;

(2) Notify the unit of the violation. For individuals, notify their employer or disciplinary and personnel departments; for units, notify their superior or competent departments;

(3) Conduct credit evaluation. Record dishonesty in the credit management system and evaluate;

(4) Share dishonesty information. Push to the Credit Information Sharing Platform for reference and joint disciplinary measures;

(5) Transfer to authorities for accountability. If involving violations, transfer case clues to judicial or disciplinary authorities;

(6) Other lawful measures.

Article 18 Parties involved in the following circumstances may be considered for mitigation, reduction, or exemption:

(1) Showing good attitude, actively cooperating with investigation and handling;

(2) Voluntarily refund the illegal funds in full;

(3) The fraudulent behavior did not cause serious consequences;

(4) Other circumstances lawful and compliant for mitigation or exemption.

Chapter 4 Supervision

Article 19 The Provincial Housing Provident Fund Bureau shall establish and improve responsibility mechanisms for business positions, internal audits, and risk prevention, clarify responsibilities, strengthen constraints, regularly conduct audits and risk assessments, and actively prevent fraudulent withdrawal and loan behaviors.

Article 20 The Bureau shall establish and improve mechanisms for joint investigation and data sharing related to fraudulent behaviors. During document review and verification, relevant departments shall cooperate to verify information such as real estate transactions, real estate registration, and marital status.

Article 21 Staff members of the Bureau shall perform diligent review duties, verify the authenticity and compliance of submitted materials according to law and regulations, and suspend processing immediately if suspected fraudulent behaviors are found, taking active measures for investigation and handling.

Article 22 Staff of the Bureau and entrusted banks who neglect their duties, abuse power, or assist parties in fraudulent withdrawal or loan fraud, infringing on the rights and interests of employees or units, shall be held accountable according to the relevant responsibility system. Suspected violations shall be transferred to judicial or disciplinary authorities for investigation.

Chapter 5 Supplementary Provisions

Article 23 The interpretation of these measures shall be the responsibility of the Provincial Housing Provident Fund Bureau.

Article 24 The Bureau may formulate detailed implementation rules based on these measures.

Article 25 These measures shall come into force on May 1, 2026, and are valid for five years.

Policy Interpretation of the “Measures for Handling Fraudulent Withdrawal and Loan Fraud of Hainan Province Housing Provident Fund”

The “Measures for Handling Fraudulent Withdrawal and Loan Fraud of Hainan Province Housing Provident Fund” (hereinafter referred to as the “Measures”) have been approved at the second plenary session of the fifth Hainan Housing Provident Fund Management Committee. The relevant content is interpreted as follows:

1. Background and Necessity for Formulation

(1) The issuance of the “Measures” is a necessary means to regulate housing provident fund management. In recent years, with the rapid development of housing provident fund business in our province, service efficiency has significantly improved, effectively supporting employees’ reasonable housing consumption. However, some behaviors such as forging proof materials and fictitious housing consumption have emerged in the management process. These behaviors not only infringe on the legitimate rights of compliant depositors but also disrupt the normal order of housing provident fund management. To effectively curb and combat fraudulent withdrawal and loan behaviors, it is urgent to formulate a unified, clear, and operational handling approach.

(2) The issuance of the “Measures” is an inevitable requirement to implement the construction of a social credit system. One of the overall requirements is “lawful and compliant.” The General Office of the State Council issued the “Guiding Opinions on Further Regulating Dishonest Constraints and Building a Long-term Mechanism for Integrity” (Guo Ban Fa [2020] No. 49), which clearly requires further standardization and soundness of dishonest behaviors. Currently, there is no complete procedure for identifying dishonest behaviors such as fraudulent withdrawal and loan fraud. To implement credit construction requirements, it is necessary to unify the norms for identifying such behaviors, ensuring legality and compliance, and laying a foundation for housing provident fund credit evaluation.

2. Goals and Basis

To regulate the management of housing provident fund across the province, intensify the crackdown on fraudulent withdrawal and loan fraud, safeguard the rights and interests of depositors, and promote the construction of a social credit system, these measures are formulated based on the “Housing Provident Fund Management Regulations,” the “Notice of the Ministry of Housing and Urban-Rural Development, the Ministry of Finance, the People’s Bank of China, and the Ministry of Public Security on Carrying Out the Governance of Violations in Housing Provident Fund Withdrawal” (Jianjin [2018] No. 46), and other laws, regulations, and policies, combined with the actual situation of our province.

3. Main Content

The “Measures” consist of five chapters and twenty-five articles, mainly including:

• Chapter 1: General principles, clarifying the purpose, basis, scope of application, and basic requirements;

• Chapter 2: Definition of fraudulent withdrawal and loan fraud, detailing specific behaviors such as using false information, fictitious transactions, false promises, and behaviors deemed as “deemed” fraudulent withdrawal or loan fraud;

• Chapter 3: Handling procedures, including investigation, case filing, evidence collection, decision-making, and enforcement, ensuring procedural fairness and clarity;

• Chapter 4: Supervision, establishing responsibility mechanisms, internal audits, risk prevention, and accountability for misconduct;

• Chapter 5: Supplementary provisions, clarifying interpretation authority, formulation of detailed rules, and validity period.

4. Expected Effects

The implementation of the “Measures” is expected to produce positive effects such as:

• Creating a strong deterrent effect through clear identification standards and strict consequences;

• Standardizing operational procedures, providing clear guidance and legal support for staff, and strengthening risk control;

• Safeguarding fund security, ensuring funds are used for genuine and compliant purposes;

• Purifying the market environment by cracking down on illegal intermediaries and reducing their space for survival.

5. Common Questions

(1) What behaviors constitute fraudulent withdrawal of housing provident fund?

Seven types are specified, including five implementation behaviors and two “deemed” behaviors, such as using false information, fictitious transactions, multiple changes in marital status for property purchase, false promises, false litigation, exceeding policy limits after review, revocation of house registration, and other violations.

(2) What behaviors constitute housing provident fund loan fraud?

Five types are specified, including three implementation behaviors and two “deemed” behaviors, such as applying with false information, fictitious transactions, misuse of funds, exceeding policy limits, and revocation of house registration requiring loan settlement.

(3) What is the process after staff discover fraudulent behaviors?

The process includes suspending business, preliminary verification, case filing, investigation, decision issuance, and enforcement, following procedures similar to administrative penalties.

(4) What measures are taken against parties and assistants involved in fraud?

Measures include criticism, refund orders, employer notifications, credit evaluations, disciplinary transfer, information sharing, early loan maturity, loan application restrictions, and other lawful measures.

(5) What if the party refuses to refund after legal notice?

The Bureau can apply for enforcement by the court in accordance with the “Administrative Enforcement Law.”

(6) How does fraud affect depositors’ withdrawal and loan applications?

Fraudulent behaviors lead to restrictions on withdrawals and loans, including account balance restrictions, early loan maturity, suspension of interest subsidies, and reduction of loan limits, until full refund is made.

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