Research On Economic Crime Risk Prevention And Control In Network Lending

Network lending as an organic part of informal lending, conforms to the trend of thedevelopment of Internet Financial and Financial Disintermediation. Which by virtue of lowaccess threshold and transaction cost, beyond the limits of time and space, it builts acommunication platform between borrower and lender, and provides investment channels atthe same time to meet the financing needs of micro enterprises and people. Network lendinghas becoming an effective complement to formal finance, winning the market and thegovernment regulators’s affirmation. However, after the initial stage of rapid development ithas also exposed many problems, such as economic crime risk has becomig the focus ofpeople. How to effectively prevent economic crime hanppened in network lending, how tocontrol the risk of economic crime in network lending becomes the emphasis and significanceof this paper.Under the current legal framework, the situation of network lending and economic crimeis analyzed by using the empirical analysis.The characteristics of economic crime in networklending were briefly summarized by using the typical cases.Combined with the postmodernfocus on risk of crime prevention theory, the writer put forward the risk and identifying waysof economic crime in network lending, which comprehensive prevention and controlmeasures based on, providing useful help to establish regulatory mechanism construction ofregulatory agencies and the network lending platform’s own defense mechanism. Besides theintroduction, this paper is divided into four parts.The first part is about the status at home and abroad. The author thinks that the networklending platform should return the nature of financial intermediary, while the existing networklending platform does not meet all the P2P network lending essential components, and itrefers to as " network lending" for more appropriate. According to the operation risk andeconomic crimes, the author thinks the research should further strengthen the quantitativeanalysis so as to enhance the reliability and validity of the conclusion, enhannce practical. Thelegal system should be improved step by step, for dealing with the immediate problems andhasty formulating regulations without taking into all account it will undoubtedly leads toendless troubles. The second part mainly introduces the development status of China’s network lending.The empirical analysis is based on the development status of network lending by using thestatistical data, the number of network lending platform, the turnover number, the number ofinvestor and borrowers, the revenue and the " platform" were analyzed.The preliminaryestimate of2013national network lending platform shows that the turnover amountes to195800000000yuan, the loan stock amounts to25800000000yuan, the number of borrowersamounts to more than300000, and other statistics of the annual growth rate is also high.The third part focuses on the economic crime risk in network lending and the analysis oftypical cases. Through the "YouYiDai" case analysis, the writer finds that the netwok lendingplatform operators engaged in economic crime has shown the following characteristics: Underthe guise of large enterprises in the name of exaggerate the strength of enterprises; Using highreturns to attract a large number of investment; The fiction of a large number of Lenderinformation; Investor’s capital is insecurity; Providing false guarantee; Using multiplechannels to carry out extensive propaganda; The lack of supervision in advance and the lackof early warning mechanism.The author brings the social risk harm possibility into the possibility of the occurrence ofcrimes, and analyzes the feasibility of crime risk prevention. Referencig to postmodernfocusing on risk crime prevention theory, the writer puts forward the economic crime riskfactors exist in two aspects:the network lending platform’s operators and the borrower.The fourth part puts forward the countermeasures of prevention and control of economiccrime risk in network lending.This part analysis the establishment of the regulatorymechanism,the improvement of the operation mechanism of network lending platform, thecomprehensive reform of the legal system, the effect of crime preventing and fighting boughtby police. Then, the writer puts forward countermeasures of prevention and control ofeconomic crime in terms of both lenders and borrowers self protection, and proposes theestablishment of risk prevention and control, compliance review by regulatory strategy. Thenetwork lending platform should strengthen their own crime risk prevention and control fromperfecting self-discipline, operation process, the risk early warning mechanism etc. Police asthe main part in economic crimes attacking, not only needs the further study of the crime,establish and perfect the basic detection strategy, continuously strengthen the crackdown, butalso should perfect the information acquisition, the linkage of police at all levels, suspectdatabase construction and other aspects of prevention mechanism of daily. In addition, enhancing self-protection awareness of the debit and credit, increasing social mediasupervision will help to prevent the economic crime in network lending platforms.