People’s Bank of China, the central bank of the country, has imposed a monetary fine of CNY22.37m ($3.52m) on online lender MYBank, Reuters has reported.
As per the report, Ant Group-backed MYBank violated rules on credit scoring management and transacted with unidentified customers.
Go deeper with GlobalData
The online bank was also penalised for laxity in fulfilling PBOC’s know your customer (KYC) requirements and for not reporting suspicious transactions.
MYBank’s spokesperson told the news agency that the issues had been addressed by 2020.
As per the report, MYBank’s nine executives and managers including then-deputy chief executive Feng Liang were also among those fined for violations.
The announcement comes as the Chinese regulators are tightening their grip on the firms operating in the online financial services space as part of their anti-money laundering efforts.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe PBOC and China’s Ministry of Public Security have also launched a three-year campaign to tackle money laundering.
In November 2020, Chinese authorities stalled Ant Group’s $37bn initial public offering (IPO) and ordered it to restructure as a financial holding company.
Most recently, China Cinda Asset Management abandoned its plans to make a $942.27m investment in Ant Group’s Chongqing Ant Consumer Finance.
Notably, the consumer finance unit was set up as part of Ant Group’s restructuring plans and Cinda’s decision would further delay it.
