The reason was the alleged breach of the Ant Group’s consumer protection and corporate governance rules
The Chinese central bank has fined Ant Group, a subsidiary of Alibaba Group, around $1 billion. The reason is alleged violations of laws and regulations, including corporate governance, consumer protection and anti-money laundering requirements.
The Ant group said it would comply “The terms of punishment in all seriousness and sincerity.” And it will continue “Further strengthening our compliance governance”.
The fine is intended to complete Ant Group’s restructuring process and investigation by Chinese authorities after the company canceled a $37 billion initial public offering.
The authorities’ investigation began after a speech by billionaire and company founder Jack Ma in 2020. On the occasion, he criticized government regulators and banks, prompting a campaign in Beijing to take control of the company.
Alibaba was already fined in April 2021 by the Chinese $2.5 billion for alleged monopolistic practices.
In January this year, Guo Shuqing, chairman of the Communist Party of the People’s Bank of China, told the state news agency XinhuaThe government’s actions have ended expectations of boosting China’s overseas economic growth, jobs and competitiveness.
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