BEIJING -- China has imposed harsher penalties for medical insurance fund fraud in a new regulation coming into force on Saturday.

As China's first regulation on the supervision and management of medical insurance funds, it is promulgated to further ensure security and promote the effective use of the funds.

The regulation clarifies legal liabilities for every part on the chain, including administrative organs responsible for healthcare security, designated medical institutions and the people under the medical insurance system, said Shi Zihai, deputy director of the National Healthcare Security Administration.

Malpractices including fraudulently using medical insurance funds may face a suspension of reimbursement through the network for three months to 12 months and penalties equal to up to five times of the amount obtained falsely.