What’s new: China’s central bank fined four financial institutions a total of 18.04 million yuan ($2.76 million) for failure to perform customer identification verification, report suspicious transactions and other violations that may enable criminal activity.
Tencent Holdings Ltd.’s online payment platform Tenpay was fined 8.7 million yuan for providing payment services for illegal and false transactions, conducting QR code payment processing business without a license and other violations.
Another online payment company owned by Shenzhen Tempus Global Business Service Holdings Ltd. was fined 6.14 million yuan for conducting transactions with unidentified customers, providing illegal payment services and other violations.
The Shenzhen branch of Agricultural Bank of China was fined 2.3 million yuan and China Development Bank’s financial leasing arm CDB Leasing was penalized 900,000 yuan, according to an administrative penalty notice posted on the central bank’s website Thursday.
The background: The penalties were levied as China’s regulators step up scrutiny of fintech companies amid financial stability concerns.
Chinese authorities have conducted a nationwide “Card Breaking Campaign,” an operation to crack down on illicit bank card transactions involving online payment platforms that helped illegal online gambling launder $153 billion in the first nine months of 2020.
Related: Cover Story: How Illegal Online Gambling Launders $153 Billion From China
Contact reporter Denise Jia (huijuanjia@caixin.com) and editor Bob Simison (bobsimison@caixin.com).
