(Yicai Global) July 30 -- China's central bank has fined state-owned underwriter China Life Insurance for negligence in the management of customer data which breached anti-money laundering laws.
The Beijing-based firm will have to cough up CNY700,000 (USD102,600) to the People's Bank of China, the insurer said in a statement yesterday. The company failed to hold clients' identification documents and transaction records and did not report large, suspicious dealings between July 1, 2015 and June 30, 2016, it added.
The central bank began tightening supervision over insurers at the start of this year in order to prevent money laundering scams. It has meted out punishments to a raft of financial firms, with China Life the better known among them.
Stricter rules governing customer data at financial institutions were introduced in June 2015, amid wild share price fluctuations as the stock market slumped after a year of bullish momentum. Regulators punished several institutions from home and abroad for malicious short selling and manipulation of a highly volatile stock market.
China Life did not give exact details of its wrongdoings and the central bank is yet to announce the penalty online. The firm has taken feedback on board after on-site inspections and has set up a new anti-money laundering system which fills the voids it was penalized for, the statement added.
Editor: James Boynton