(Yicai Global) Feb. 9 -- China’s central bank has penalized 99Bill to the tune of CNY10.04 million (USD1.58 million) because of account management violations. It’s the first anti-money laundering fine of more than CNY10 million to be slapped on a third-party payments provider this year.

The Shanghai branch of the People’s Bank of China handed 99Bill the penalty due to four breaches, including failure to verify customers' identities and insufficient clearing management, the PBOC said recently.

Moreover, the PBOC punished another payment platform. Day's Enterprise was given a CNY4.3 million (675,760) fine due to its poor clearing management. It was ordered to rectify within a certain time limit.

Increasingly stringent regulation is expected. China released new anti-money laundering guidelines, which include financial institutions other than banks, last August. Moreover, the PBOC issued new client management rules last month. Those state that each financial institution must finish due diligence of all existing customers in two years after the rules come into effect on March 1.

Payment institutions are likely to focus on anti-money laundering for some time to come amid the stricter regulatory environment, according to industry insiders.

The penalties also reach individuals. Dang Xiaoqiang, who was 99Bill's chief executive during the incidents, was given a fine of CNY35,000 (USD5,502). Teng Shijun, who was serving the Shanghai-based company as its assistant vice president, needs to pay CNY85,000.

In 2020, the PBOC inspected 614 institutions for anti-money laundering, according to its recent report. Almost 540 of them were fined CNY526 million (USD82.7 million). Some 1,000 individuals who had broken the rules needed to pay nearly CNY24.7 million. The penalties were bigger than those given during recent years.

Editor: Emmi Laine, Xiao Yi