What’s new: China’s central bank fined Zhongtian Securities Co. Ltd. 1.37 million yuan ($216,000) for failing to comply with anti-money laundering regulations in the first such penalty imposed on a brokerage house this year.
Zhongtian was punished for failing to verify customers’ identities and report suspicious transactions to authorities in accordance with the rules, the Shenyang branch of the People’s Bank of China said in a statement.
Two Zhongtian senior executives were also punished, according to the bank.
The context: Chinese regulators have stepped up scrutiny of financial institutions’ compliance under a broader campaign to crack down on financial risks, with anti-money laundering compliance as a focal point.
The central bank earlier said it would partner with several government agencies to launch a three-year crackdown on money laundering from 2022 to 2024. Authorities pledged to adopt a national risk prevention system against money laundering, improve laws and regulations, and enhance analysis and investigation of money laundering
In early February, Ant Group-backed online lender MYBank was slapped with a 22.37 million yuan fine by the central bank for multiple violations including breaching credit scoring management and anti-money laundering rules.
More than 10 brokerage houses including Everbright Securities and Ping An Securities have received regulatory warnings for violations in corporate governance and business compliance so far this year.
Contact reporter Han Wei (weihan@caixin.com) and editor Bob Simison (bob.simison@caixin.com)
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