(Yicai) Sept. 24 -- China's central bank has penalized four lenders and their relevant executives more than CNY50 million (USD7.45 million) for violations involving anti-money laundering, account management, data security, and other issues. One major bank was fined more than CNY17 million for breaches involving less than CNY300 (USD44.7) in illegal proceeds.

In addition to penalizing the banks, the People’s Bank of China intensified its focus on holding responsible individuals accountable. Thirty-two individuals across the four lenders -- Postal Savings Bank of China, China Guangfa Bank, China Bohai Bank, and Bank of Jiangsu -- were penalized, Yicai calculated based on the PBOC’s announcement on Sept. 24. They range from frontline staff to back-office employees responsible for internal control and compliance.

Postal Savings Bank was penalized for 10 violations, including breaches of regulations on financial statistics management, account management, and bank card acquisition services, resulting in the confiscation of CNY290.20 in illegal gains and a fine of CNY17.4 million.

Common violations at these banks included failures to perform customer identity verification, failures to report large-value transactions as required, and engaging in transactions with unidentified customers or opening anonymous accounts.

Issues regarding data statistics and the improper retention of funds were also prevalent. Violations of financial statistics regulations and the unauthorized retention of fiscal deposits or funds were common across the institutions. Furthermore, all four banks were penalized for violating data security regulations, while the Bank of Jiangsu and China Bohai Bank also faced penalties for violating cybersecurity regulations.

Compared with the penalties handed out by the National Financial Regulatory Administration and its local bureaus, the PBOC issues fines less frequently and focuses on different areas.

China Construction Bank, Shanghai Pudong Development Bank, and Beiyin Wealth Management have also been fined by the PBOC so far this year, as rigorous oversight is stepped up, with the focus increasingly on the standardization of financial statistics, anti-money laundering obligations, and data security.

Anti-money laundering-related violations accounted for the highest number of fines issued by the central bank last year, followed closely by infractions involving credit reporting, payment and settlement services, account management, and data statistics and regulatory reporting, according to data from Qiye Yujingtong.

Since the start of this year, violations topping the list of penalties have continued to follow this pattern, while there has also been an increase in fines related to bank card operations and data governance.

Editor: Tom Litting