The central bank strictly orders! Clear this type of payment business before the end of June!

At the end of last year, the General Office of the People ’s Bank of China issued the “Notice on Further Strengthening the Rectification of Unlicensed Payment Services” (Yinbanfa [2017] No. 217), which aims at the centralized remediation of unlicensed payment institutions. In June, the illegal operation of payment business without a license was completely eliminated.

The operation will be divided into the following stages:

(1) The self-inspection and self-correction stage of the certificate holder (before the end of December 2017).

(2) The stage of organizational inspection of the branches of the People's Bank (end of February 2018)

For verified undocumented institutions, the branches of the People's Bank of China shall urge them to rectify within a time limit and withdraw from the market. During the rectification period, the stock violation business must decline, and non-compliant business will not be added. With regard to resistance to regulatory requirements, serious violations, and greater social impact, the People ’s Bank of China branch shall actively coordinate with relevant departments of industry and commerce, public security, etc. to investigate and punish in accordance with law.

(3) The head office of the People's Bank of China organized the on-site inspection stage (before the end of April 2018).

(4) Penalty and summary stage (before the end of June 2018).

Focus on the inspection objects of the certificate holders, and comprehensively inspect the violations of the certificate holders' provision of payment and clearing services for unlicensed payment business institutions.

In 2018, the inspection of the payment industry will focus on six major areas such as unlicensed operation.

The overwhelming inspection of the deterrent payment settlement market has not stopped.

The Central Bank's Payment and Settlement Department issued the “Guiding Opinions on Key Spot Checks in 2018” (YinPay [2018] No. 51, hereinafter referred to as the “Guiding Opinions”) for the first time last month to arrange a major inspection of the payment and clearing market in 2018. In the Guiding Opinions, the central bank included unlicensed payment services, bank settlement account management, reserve funds, acquiring merchant management, payment information authenticity, barcode services, and single-standard foreign currency card usage in key spot checks.

The content of the first spot check: operating the payment business without a license, focusing on the spot check of the license holders to provide payment services for violations of the rules of the licenseless institutions. The second spot check: the central bank will focus on spot checks on the management of bank settlement accounts, spot checks on the opening and use of individual bank settlement accounts, and the opening of the main account and sub-accounts of multi-level unit bank accounts.
The third spot check: the implementation of the “Notice on Adjusting the Centralized Deposit Ratio of Payment Institutions’ Client Reserves ”by the Central Bank ’s General Office, focusing on spot checks of payment institutions and reserve banks to centrally deposit client reserve in accordance with the prescribed ratio.

The fourth spot check content:

1. Regarding the management of merchants of acquiring institutions, the key point is to check whether the merchants use the APP to implement the "two clearing"; to check the management of small and micro merchants, to check the identification documents of the main responsible person as required, and to set the upper limit of the credit card payment amount;

2. The authenticity, completeness and traceability of payment transaction information. Focus on spot checking whether the three parties are transmitting true, complete and effective transaction information and payment instructions in accordance with relevant regulations;

3. With regard to collection business management, focus on spot checks on authorization and agreement management, collection business scope and interface management;

4. With regard to the management of the interface of the payment business system, focus on random inspection of interface usage management, "disconnected direct connection" between payment institutions and commercial banks, and focus on spot checks on whether payment institutions have stopped adding directly connected payment products or services that handle cross-bank clearing, Whether the stock business has been gradually moved to a legal clearing institution;

5. Regarding the management of barcode payment business, focus on spot checks on business qualification compliance, cross-bank transaction management, quota management, etc .;

6. Regarding the issuance and use of single-standard foreign currency cards in China. The focus of the spot check is whether it is limited to overseas consumption and other businesses, and whether banks and payment institutions and foreign institutions have adopted a disguised form of cooperation to enable foreign institutions to engage in bank card clearing business in RMB in advance.

The fifth spot check content: the cancellation or suspension of the business of banks and payment institutions.

The sixth spot check: the management of the repayment clearing system.