China’s central bank has imposed a hefty fine of $985 million on Ant Group for breaching several laws and regulations.
According to the People’s Bank of China, Ant’s violations pertain to corporate governance, financial consumer protection, the engagement in banking and insurance activities, payment and settlement operations, and anti-money laundering obligations.
Ant Group has been under scrutiny from Chinese regulators for several years. In late 2020, a planned $37 billion IPO was halted due to the introduction of stricter regulations for fintech companies venturing into the banking sector.
Since then, Ant has been working to address regulatory concerns, undergoing a two-year restructuring to become a financial holding company that meets capital requirements similar to those of traditional banks. Additionally, in January, founder Jack Ma stepped down from control of the company.
The recent fine allows Ant to proceed with its plans to obtain a financial holding company license, which could revive its prospects for an IPO. The central bank has stated that it will focus on enhancing regular supervision of financial activities conducted by platform companies.
Ant has responded, asserting their commitment to adhere to the penalty’s terms and to further strengthen their compliance governance.