China Tightens Supervision of Non-Bank Payment Firms
Stricter Regulations for Non-Bank Payment Institutions in China
China’s State Council, under Premier Li Qiang’s leadership, has introduced new rules for the supervision and management of non-banking payment institutions, set to be enforced from May 1. These regulations aim to implement tougher licensing requirements, enhance risk management, and prevent criminal activities within non-bank payment platforms.
Emphasis on Risk Management and User Protection
The rules, announced jointly by the People’s Bank of China and the Ministry of Justice, highlight the need for stronger risk management and protection of user information. Additionally, non-bank payment platforms are required to display clear pricing for their services and charge reasonable fees. The regulations also raise the stakes for serious violations, imposing stricter penalties.
Consequences for Violations
In the event of rule violations, the central bank will now have the authority to impose fines, restrict payment operations, order business suspensions for rectification, or even revoke payment business licenses. These measures serve to ensure compliance and accountability within the non-bank payment industry.
