(Yicai Global) Dec. 27 -- China's central bank has hit the third-party payment service subsidiary of China Mobile Communications Corp. with a fine of USD7,642 (CNY50,000) for multiple offenses against financial regulations.
The Changsha branch of the People's Bank of China (PBOC) announced its administrative penalty decision -- dated Dec. 7 -- yesterday. Violations Cmpay -- China Mobile's payment service unit -- committed include failure to register customers' real names, opening payment accounts without customers' consent, and setting up payment accounts for unqualified financial institutions.
China Mobile is one of the three major telecommunication carriers in China.
The company formed Cmpay as a wholly-owned subsidiary in Changsha, capital of south-central Hunan province, in 2011. It holds a PBOC-issued payment business license and is the only payment settlement service operator under China Mobile.
The firm halted transactions for all non-real-name-registered accounts from Dec. 22, per a statement it posted on its website Dec. 13. Affected users must now submit identity documents for account reinstatement.