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Ant Group, the fintech giant in China, has been fined $985 million by the country’s central bank for breaching numerous laws and regulations.
The violations committed by Ant Group include issues related to corporate governance, financial consumer protection, involvement in the business activities of banking and insurance institutions, payment and settlement operations, and anti-money laundering obligations, as stated by the People’s Bank of China.
Chinese regulators have been closely scrutinizing Ant Group for several years. The company’s plans for a $37 billion initial public offering (IPO) were thwarted in late 2020 when tighter restrictions were imposed on fintech firms entering the banking sector.
Since then, Ant Group has been working towards appeasing authorities by undergoing a two-year restructuring to transform into a financial holding company subject to capital requirements similar to those of banks. Additionally, in January, founder Jack Ma relinquished control of the company.
Although the fine represents a significant penalty, it enables Ant Group to proceed with its efforts to obtain a financial holding company license and potentially revive its IPO plans.
Moving forward, the central bank aims to strengthen the supervision of financial businesses conducted by platform companies and bring various financial activities under regulatory oversight.
Ant Group has responded by stating, “We will diligently comply with the terms of the penalty and continue to enhance our compliance governance measures with utmost seriousness and sincerity.”
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