An Internet financial firm headquartered in Futian District recently received a huge fine of over 40 million yuan (US$6.28 million) for illegally providing payment and liquidation services for illicit overseas platforms trading gold and foreign exchange, the Nanfang Daily reported.
The Shenzhen Central Sub-branch of the People’s Bank of China, along with the State Administration of Foreign Exchange, recently carried out an inspection of the Shenzhen company called DDBill Payment Co. Ltd., also known as www.dinpay.com.
It was found that the firm, which provided online payment solutions for merchants, businesses and consumers, was involved in offering payment services to illegal exchange trade platforms through fabricated trades.
The Internet financial firm failed to detect that its overseas clients were trading illegally through private payment accounts that were directly providing illegal services. The company also did not follow strict procedures to check its clients’ real identities.
According to a staffer from the Shenzhen banking watchdog, the company violated China’s regulations on foreign exchange, caused negative social impact and received many complaints.
The authority decided to issue a warning against the company and a fine of over 40 million yuan as punishment.
Officials from the People’s Bank of China and the administration said tougher measures would be taken against illegal Internet financial companies.