(WSJ) Chinese regulators have faulted WeChat Pay mobile network for violations of the central bank regulations, in what could accrue to a record fine for Tencent Holdings Ltd.
Beijing says that it discovered that Tencent’s WeChat Pay flouted its anti-money laundering rules. The regulators also noted weaknesses in the platform’s “know your customer” and “know your business’ regulations.
The Chinese financial regulators say the WeChat Pay allowed the transfer and laundering of funding through illegal means such as gambling.
The Chinese central bank noted the breaches of the rules on WeChat Pay through a routine inspection that was concluded late last year.
The potential fine for Tencent runs into hundreds of millions of yuan, a record compared to similar penalties imposed on firms accused of anti-money laundering breaches in the past.
The move by the Chinese regulator is seen to underline a reign on fintech platforms. It comes after the Chinese regulators published draft regulations on anti-money laundering in June last year.
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