Yes, it is illegal for employees to withdraw housing provident fund through false purchase vouchers or through intermediaries, which should be punished according to law. Although the provident fund belongs to "the money in your own account", the risk of taking the housing provident fund through false purchase procedures should not be underestimated. For depositors, it can be said that there is no way out, because individuals often forge the Real Estate Sales Contract and the Deed Tax Payment Certificate in the process of illegally cashing out the provident fund, which violates the relevant provisions of the Criminal Law and can be sentenced to fixed-term imprisonment of not less than three years but not more than ten years.

Moreover, even if there is no such behavior, provident fund loans are based on the credit records of employees as an important basis for approval. Loans are not allowed or restricted for employees in the following situations:

(a) employees who withdraw the balance stored in their housing provident fund accounts by deception can apply for housing provident fund loans after 2 years from the date of full refund; If the circumstances are serious, you can only apply for housing provident fund loans within 5 years from the date of full refund, and the loanable amount does not exceed 50% of the normal application amount;

(2) Employees who have lived in loans overdue for more than 6 periods (including 6 periods) can apply for housing provident fund loans only after the loan has been settled for 2 years; If the circumstances are serious, you can only apply for a housing provident fund loan for 5 years from the date of loan settlement;

(three) employees who provide false information to defraud loans, the provident fund center will keep bad credit records for 5 years, during which the application for housing provident fund loans will not be accepted; If the circumstances are serious, legal responsibility shall be investigated.