Too Many Crooked Third-Party Payers in China, PBoC Forces Bank Deposits

ECNS: PBOC in move on payment agencies

China's central bank, or PBOC, said on Friday that it will eventually ban all non-bank payment agencies, including Alipay, from using clients' money. As a first step, it will require all platforms to deposit some 20 percent of clients' funds to appointed bank accounts.

The move is the latest step taken by the central bank to tackle the financial risks caused by a rising number of institutions found illegally embezzling the money.

Starting from April 17, a total of 267 third-party organizations with the central bank's licenses in China, including Alipay, have to submit around 20 percent of provisions to a single account opened in a commercial bank, with the central bank's approval.

..."The 20 percent level aims to leave time for institutions to adapt to new rules," said Xie Zhong, head of the central bank's payment and settlement department. "The final level will be 100 percent," meaning that the central bank will be the only authority governing provisions.

The Economic Observer outlines some of the recent firms running into trouble: 央行为何担忧第三方支付备付金存管？看完这些案例你就明白了

The People's Bank of China ordered the following misappropriation of misappropriation of funds and has not yet completed the funding gap of the shortfall of funding agencies to fill the gap, and control the implementation of the management system reform, and effectively protect the security deposit.

1. Xi'an silver letter to Electronic Payment Co., Ltd. misappropriation, occupied reserves of 3,393.73 million, funding gap of 23.252 million yuan.

2. An Yi Lian Rong Electronic Commerce Co., Ltd. misappropriated, occupied reserves of 94,621,300 yuan, the reserve fund gap of 33 million yuan.

3. Hunan Star Media Co., Ltd. misappropriated, occupied reserves of 23.6356 million yuan, the reserve fund gap 23.5532 million yuan.

4. Guangxi Paiduantong Business Service Co., Ltd. misappropriated and appropriated 9,953.91 million yuan of reserve funds, and the gap of reserve funds was RMB 66.6128 million yuan.