(Yicai) Nov. 27 -- China will make the punishments for certified public accountants who violate existing laws and regulations more severe to strengthen oversight of the financial accounting industry, and will include offenders on a list of Seriously Dishonest Entities, the Ministry of Finance said today.

Under the new regulations, certified public accountants and accounting firms that are suspended from practicing for a year, have their licenses revoked, or are held criminally liable for unlawful practices will be included on the list of seriously dishonest entities, according to a document released by the ministry on its website.

In addition, certified public accountants and accounting firms that refuse to comply with the penalties within the given time frame and where the circumstances are serious, as well as those that provide accounting services without approval will be included on the said list, the document said. The new regulations will take effect on Jan. 1 next year.

The black list will be made public through the websites of provincial and higher-level finance departments, the ministry said. These dishonest entities will not only face restrictions on practising as required by law, but will also be regarded as key targets for supervision by financial regulators who will increase the number of spot checks on them.

The new regulations also provide dishonest entities with an opportunity to rebuild their reputation. If they have been on the list for a period of one year, have conscientiously fulfilled the obligations stipulated in the administrative penalty decision, eliminated the adverse effects caused by their unlawful actions, and have not been subject to further penalties during this period, they can apply to be removed from the list in advance.

There were 10,794 accounting firms, 105,667 certified public accountants, and 281,237 certified non-practicing members in China as of May 31, according to data from the Chinese Institute of Certified Public Accountants.

Editors: Dou Shicong, Kim Taylor