Ant Group fined while financial regulators acknowledge progress in rectification

Chinese financial giant Ant Group has received a penalty exceeding 7 billion yuan (US$984 million) from regulators who noted "significant progress" in the three-year rectification process for the country's financial platform enterprises.

Since November 2020, regulators have closely supervised major platform enterprises, including Ant Group and Tencent Group, in addressing regulatory violations. The China Securities Regulatory Commission stated that the majority of prominent issues have now been resolved.

Ant Group and its affiliates have been fined a total of 7.123 billion yuan for violations related to company governance, consumer protection, banking and insurance activities, payment settlements, anti-money laundering obligations, and fund sales.

As part of the penalty, Ant Group is required to discontinue its "Xianghubao" insurance business, compensate affected consumers, and ensure ongoing compliance with regulations.

With the rectification process nearing completion, regulatory focus is now shifting toward regularized supervision, according to the statement.

In response, Ant Group released a statement affirming its completion of the rectification work and expressing its commitment to earnestly complying with the terms of the penalty while further enhancing compliance governance.