Changing a demand deposit into a time deposit may constitute embezzlement of public funds. The law stipulates that state workers who take advantage of their positions to misappropriate public funds for personal use and engage in illegal activities, or who misappropriate a relatively large amount of public funds for profit-making activities, or who misappropriate a large amount of public funds and fail to repay them for more than three months , constitutes the crime of misappropriation of public funds. Therefore, converting a demand deposit into a fixed term may constitute embezzlement of public funds.

Legal Basis

Article 272 of the Criminal Law

Staff of a company, enterprise or other unit who take advantage of their position to misappropriate If the unit's funds are used by individuals or are lent to others, and the amount is relatively large and the amount is not repaid for more than three months, or if the amount is relatively large and the amount is less than three months, and the amount is used for profit-making activities, or if the organization engages in illegal activities, he shall be sentenced to three years in prison. The following: fixed-term imprisonment or criminal detention; whoever embezzles a huge amount of the unit's funds shall be sentenced to fixed-term imprisonment of not less than three years but not more than seven years; if the amount is particularly huge, he shall be sentenced to fixed-term imprisonment of not less than seven years.

If a person engaged in official duties in a state-owned company, enterprise or other state-owned unit and a person assigned by a state-owned company, enterprise or other state-owned unit to a non-state-owned company, enterprise or other unit to engage in official duties commit any act in the preceding paragraph, he or she shall be punished in accordance with the preceding paragraph. Convicted and punished in accordance with the provisions of Article 384 of this Law.