Tencent Holdings Ltd is facing a possible record fine for violations of PBOC’s regulations by its WeChat Pay network, according to a report by The Wall Street Journal on Monday.
- Financial regulators found out that WeChat Pay had violated China’s anti-money laundering rules and had flouted provisions of “know your customer” and “know your business” regulations.
- Tencent’s ubiquitous mobile payments network was found liable for allowing the transfer and laundering of funds with illegal transactions such as gambling.
- WeChat Pay must verify the identities of users and merchants conducting transactions on its platform and the source of funds for transactions.
- The People’s Bank of China discovered the breaches during a regular audit of WeChat Pay that was finalized in late 2021. The size of the fine is still under review and could be around millions of yuan.
That fine would be much larger than fines regulators usually impose on non-bank payment companies for violating the anti-money-laundering rules in the past. TCEHY down -5.19%