March 2024 / WSJ / China’s Government Raises Fines on Due-Diligence Firm
In 2023 a U.S.-based firm conducting corporate background inquiries on Chinese companies is caught up in government crackdown
New York based Mintz Group with offices in China fined $1.5 million by Chinese government last year was hit in a crackdown on businesses conducting corporate inquiries in China. The Mintz Group was one of multiple foreign consulting firms that were raided by Chinese government officials in 2023. Beijing’s oversite of the corporate investigations sector has come under greater scrutiny over the past decade.
“China imposed more fines on the Beijing arm of Mintz Group, saying the New York-based due-diligence firm failed to respond to earlier penalties meted out over allegedly unapproved statistical work. The increased fines came about a year after authorities raided Mintz’s Beijing office and detained all five Chinese nationals working there—a move that fueled international concern over a broadening security crackdown on companies that collect and manage data in China and the heightened risks of doing business in the world’s second-largest economy.” (Quoted from WSJ article referenced below)
The Beijing Municipal Bureau of Statistics ordered Mintz’s Beijing office to pay fines of roughly $2.2 million citing the company’s failure to comply with or appeal existing penalties previously issued.
Due-diligence firm the Mintz Group provides background checks and investigations on potential business partners, rivals and new hires services such as background checks and investigations on potential business partners, rivals and new hires.
Please reference this WSJ Article for further information: https://www.wsj.com/world/china/china-raises-fines-on-mintz-due-diligence-firm-c7486aeb