China Fines JD.com Payment Unit $1.3 Million for Compliance Violations
The People’s Bank of China’s Beijing branch has imposed a fine of nearly RMB 10 million ($1.3 million) on Online Banking, also known as Chinabank Payments, the third-party payment subsidiary of JD.com. This penalty addresses ten specific compliance violations, including the failure to enforce real-name verification for merchants and permitting transfers between non-matching accounts. The regulatory action requires the company to forfeit RMB 2.19 million in illegal gains and pay an additional fine of RMB 7.43 million. Furthermore, a former president of Online Banking was personally fined RMB 330,000 for responsibilities related to irregular interface management and inadequate corporate account verification. This marks the second penalty for the firm this year, following a RMB 1 million fine in January. The escalating regulatory scrutiny highlights ongoing governance challenges within China's payment sector as the country prepares for a global anti-money laundering review in 2025. In response, JD.com’s payment unit stated that it has completed necessary rectifications and pledged to strengthen its compliance frameworks to meet regulatory standards.
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China Fines JD.com Payment Unit $1.3 Million for Compliance Violations
The People’s Bank of China’s Beijing branch has imposed a fine of nearly RMB 10 million ($1.3 million) on Online Banking, also known as Chinabank Payments, the third-party payment subsidiary of JD.com. This penalty addresses ten specific compliance violations, including the failure to enforce real-name verification for merchants and permitting transfers between non-matching accounts. The regulatory action requires the company to forfeit RMB 2.19 million in illegal gains and pay an additional fine of RMB 7.43 million. Furthermore, a former president of Online Banking was personally fined RMB 330,000 for responsibilities related to irregular interface management and inadequate corporate account verification. This marks the second penalty for the firm this year, following a RMB 1 million fine in January. The escalating regulatory scrutiny highlights ongoing governance challenges within China's payment sector as the country prepares for a global anti-money laundering review in 2025. In response, JD.com’s payment unit stated that it has completed necessary rectifications and pledged to strengthen its compliance frameworks to meet regulatory standards.
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