March 26 2016
Chinese authorities plan to set up a technical support system to tackle money laundering and financing for terrorism amid the rise of internet finance, a top central bank official said yesterday, emphasising that both conventional and online financial activities should be subjected to the same regulatory standard.
China’s internet finance companies often lacked awareness in risk control, compliance and consumer rights protection, Pan Gongsheng, vice-governor of the People’s Bank of China, said at the official launch of the National Internet Finance Association of China.
The Shanghai-based industry group would join Chinese regulators in monitoring suspicious trade activity and identifying their clients, Pan said.
The establishment of the association, which was instructed by the central bank and other financial regulators, follows China’s clampdown on Ezubao, a peer-to-peer lending company which had duped about 900,000 investors out of 50 billion yuan.