China's Central Bank Fines JD.com's Payment Unit Again for Compliance Lapses
China's central bank has imposed a significant fine on JD.com's third-party payment unit, JD Finance, for compliance failures. This is the second penalty for the company this year, indicating increased scrutiny on payment institutions.
The People's Bank of China fined JD Finance nearly RMB 10 million ($1.3 million) for lapses such as irregular interface management and failure to verify corporate account openings. This follows an earlier fine of RMB 1 million ($139,000) in January for two violations. 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).
In response, JD.com has completed rectifications and pledged to strengthen compliance. A former Online Banking president was also fined RMB 330,000 for his role in the compliance failures. The escalating penalties highlight governance weaknesses as China prepares for a global anti-money laundering review in 2025.
The recent fines on JD.com's payment unit underscore the need for robust compliance measures in China's financial sector. With an upcoming global anti-money laundering review, authorities are cracking down on violations to ensure the sector meets international standards.
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