Payment Firm Fortune Bill Fined $1.34 Million for Violations
What’s new: China’s central bank fined third-party payment provider FortuneBill 8.68 million ($1.34 million) for breaching industry rules as regulators tighten scrutiny of the fast-growing sector to rein in financial risks.
Chongqing-based FortuneBill was accused of 10 violations including flaws in managing users’ accounts, inadequate verification of users’ identities, failures to report suspicious transactions and fabricating accounts, the Chongqing branch of the People’s Bank of China said Wednesday.
Five company executives including Chairman Luo Jian were fined a combined 485,000 yuan.
What’s the context: FortuneBill is the latest payment service provider targeted by regulators amid intensifying efforts to crack down on financial misconduct.
An industry source said the central bank has tightened scrutiny of the payment sector since 2018 and toughened penalties for violators. In 2020, the central bank fined several payment companies including AllScore Payment Service Co. Ltd. and Rui Pay.
Caixin learned that the central bank also modified business license review requirements on payment companies, making those with serious violations subject to having their licenses revoked.
Established in 2011, FortuneBill was among the first companies to win third-party payment licenses from the central bank in late 2011.
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