(Yicai) Aug. 30 -- Lakala Payment, the first online payments platform to go public in the Chinese mainland, has been fined CNY8.8 million (USD1.2 million) by Chinese regulators for violating anti-money laundering rules.

Lakala did not identify clients based on the rules nor report large and suspicious transactions to the authorities and made transactions with unidentified customers, according to a notice on the website of the central bank’s Beijing branch. The firm’s then vice president, who was deemed accountable, was fined CNY95,800 (USD13,150).

It is worth noting that according to China's Anti-Money Laundering Law financial institutions can be fined between CNY100,000 and CNY5 million (USD13,700 and USD686,000) for actions that have money laundering consequences.

But the Beijing branch of the People's Bank of China did not specify why Lakala's fine was so high, what the VP did, and whether the Beijing-based company will have to make any rectifications.

In December 2021, the PBOC warned and fined Lakala CNY3.6 million for multiple violations, such as unfulfilled requirements for authentic, intact, and traceable transaction information and failing to set up the settlement accounts of merchant service banks, implement localized business requirements, and sign acceptance agreements with merchants.

Lakala’s shares [SHE: 300773] ended little changed today at CNY18.95 (USD2.61) each.

Lakala reported a net profit of CNY511 (USD70 million) for the first half of the year, up 55 percent from a year earlier. Revenue fell 1.4 percent to CNY3 billion (USD311.7 million).

Editor: Futura Costaglione