The reason for the fine, and the fine amount is so high, is that there is more than one illegal act in the letter payment of commercial banks. The main illegal phenomenon is to provide payment and settlement services for illegal fund-raising platforms, which has a negative impact on the financial market, misappropriate reserve funds, and fail to centrally deposit reserve funds according to regulations, thus damaging the legitimate rights and interests of financial consumers. Jiufu Payment Co., Ltd. was fined140,000 yuan for failing to implement prepaid card business and fund settlement management as required.
Generally speaking, in order to rectify the illegal phenomenon in the payment industry, the central bank is also under pressure, hoping to deter some platforms that want to conduct illegal transactions through online payment. By raising the cost of violating laws and regulations, these payment institutions can understand that online transactions need formal and legal procedures. This kind of punishment is extremely beneficial to these investors. After all, it can help the healthy development of the payment industry and protect our legitimate rights and interests.
In September, Liao mentioned in his speech: In terms of capital chain management, China's annual cross-border gambling capital outflow exceeds one trillion yuan, and there are many regulatory loopholes in financial industry regulators, payment institutions, virtual currency and payment service providers. Moreover, the trend of cross-border gambling in China is becoming more and more serious, which is very unfavorable to China's economic security and social stability. Therefore, the fines issued by the state for loopholes in payment institutions can no longer be calculated by one or two. It's just that this action is bigger and stronger, in order to effectively curb payment violations and improve the level of risk control and the order of the payment service market.