China’s central bank has fined JD.com’s third-party payment unit nearly RMB 10 million ($1.3 million) for compliance failures, marking the firm’s second penalty this year as scrutiny on payment institutions intensifies. The People’s Bank of China’s Beijing branch said it issued a warning to Online Banking, also known as Chinabank Payments, for 10 violations, including failure to implement real-name requirements for merchants and allowing non-matching account transfers. The company was ordered to forfeit RMB 2.19 million ($300,000) in illegal gains and pay a fine of RMB 7.43 million ($1.03 million). Regulators also fined a former Online Banking president RMB 330,000, holding him responsible for lapses such as irregular interface management and failure to verify corporate account openings. The firm, acquired by JD.com in 2012, said it has completed rectifications and pledged to strengthen compliance. In January, Online Banking was fined RMB 1 million ($139,000) for two violations. The escalating penalties highlight governance weaknesses as China prepares for a global anti-money laundering review in 2025. [Caixin, in Chinese]
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