For the purposes of regulating the online payment business of non-banking payment institutions, preventing payment risks, and protecting the parties' lawful rights and interests, the People's Bank of China (“PBC”) has developed the Administrative Measures for the Online Payment Business of Non-Banking Payment Institutions, which are hereby issued for implementation.
The People's Bank of China
December 28, 2015
Annex:
Administrative Measures for the Online Payment Business of Non-Banking Payment Institutions
Chapter I General Provisions
Article 1 For the purposes of regulating the online payment business of non-banking payment institutions (hereinafter referred to as “payment institutions”), preventing payment risks, and protecting the parties' lawful rights and interests, these Measures are developed in accordance with the Law of the People's Republic of China on the People's Bank of China, the Measures for the Administration of Payment Services Provided by Non-Financial Institutions (Order No. 2 [2010], PBC) and other provisions.
Article 2 These Measures shall apply to the provision of online payment services by payment institutions.
For the purpose of these Measures, “payment institutions” means non-banking financial institutions that have obtained a Payment Business Permit in accordance with the law and are approved to provide online payment services such as Internet payment, mobile phone payment, landline phone payment, and digital TV payment.
For the purpose of these Measures, “online payment business” means that the payee or payer sends long-distance payment orders through computers, mobile terminals and other electronic equipment by relying on the public network information system, the payer's electronic equipment is not connected to the payee's specific exclusive equipment, and the payment institution provides monetary transfer services for the payer and payee.
For the purpose of these Measures, “specific exclusive equipment of the payee” means the electronic equipment exclusively used for receipts in trading, connected to the business payment system of payment institutions in the course of trading and participates in the generation, transport and handling of payment orders.
Article 3 Payment institutions shall, for purposes of providing small, rapid and convenient payment services or even micro payment services so as to serve the development of e-commerce and the society, provide online payment services for payment accounts based on clients' bank accounts or according to the provisions of these Measures.
For the purpose of these Measures, “payment accounts” means electronic books opened by payment institutions that have obtained an Internet payment business permit for clients based on their true wishes, for purposes of recording the balance of prepaid trading funds, serving as the basis for clients to send payment orders, and reflecting detailed trading information.
No overdraft shall be made under payment accounts, and such accounts shall not be lent, leased or sold, and shall not be used to conduct or assist any other persons in conducting illegal activities.
Article 4 Where payment institutions provide clients with online payment services based on bank cards, they shall implement the regulatory provisions on the bank card business and the industry standards on bank cards.
The expansion and management of franchised merchants, and business and risk management by payment institutions shall be governed by the Measures for the Administration of Bank Card Receipt Business ( Announcement No. 9 [2013], PBC ) and other relevant provisions.
Online payment services provided by payment institutions involving cross-border RMB settlement and foreign exchange payment shall be governed by the relevant provisions of the PBC and the State Administration of Foreign Exchange.
Payment institutions shall, in accordance with the law, protect the parties' lawful rights and interests, abide by the provisions on anti-money laundering (“AML”) and combating financing of terrorism (“CFT”) and perform the AML and CFT obligation.
Article 5 Payment institutions shall accept categorized evaluation in accordance with the relevant provisions of the PBC, and implement corresponding categorized supervision measures.
Chapter II Client Management
Article 6 A payment institution shall establish and improve its client identity recognition mechanisms under the principle of “knowing your clients.” If a payment institution opens payment accounts for clients, it shall conduct real-name system management of clients, register and take effective measures to validate clients' basic identity information, verify their valid identity certificates as required and retain the copies or photocopies of valid identity certificates, establish unique identification codes for clients, take sustainable identity recognition measures during the course of existence of business relations with clients, ensure the valid verification of clients' identities and their true wishes, and shall not open any anonymous or pseudonymous bank account.
Article 7 A payment institution shall sign service agreements with clients to agree on the responsibilities, rights and obligations of both parties, which shall at least specify the business rules (including but not limited to business functions and workflow, identity recognition and trading verification methods, and fund settlement methods, among others), charging items and standards, service flow and rules for inquiry, error disputes and complaints, among others, measures of preventing and handling business risks and illegal activities, the division of liabilities for clients' losses and compensation rules, etc.
Where a payment institution opens a payment account for a client, it shall, in a conspicuous manner, inform the client in the service agreement, and take valid means to confirm that the client has been fully aware of and clearly understood the following content: “the balance of funds in the payment account is not equal to the client's bank deposits, and is not protected by the Deposit Insurance Regulation, and it is, in nature, the prepaid value owned and authorized by the client for custody by the payment institution. Although the monetary funds with prepaid value belong to the client, they are deposited in the bank in the name of the payment institution, instead of the client, and the fund transfer orders shall be issued by the payment institutions to the bank.”
The payment institution shall ensure that the content of the agreement is clear and easy to understand, and remind, in a conspicuous manner, the client to pay attention to the matters with material relation of interest with him or her.
Article 8 A payment institution that has obtained an online payment business permit may open a payment account for a client upon his or her proactive application; and a payment institution that only obtains the mobile phone payment, landline phone payment or digital TV payment business permit shall not open payment accounts for clients.
The payment institution shall not open a payment account for any financial institution or any other institution that engages in financial businesses such as credit, financing, wealth management, guarantee, trust and currency exchange.
Chapter III Business Management
Article 9 A payment institution shall not run, or run in any disguised form, any business such as securities, insurance, credit, financing, wealth management, guarantee, trust, currency exchange and cash deposit and withdrawal.
Article 10 Where a payment institution sends a payment order to the bank where the client opens the account to withdraw funds from the client's bank account, the payment institution and the bank shall implement the following requirements:
(1) The payment institution shall, in advance or in the first transaction, independently recognize the client's identity and obtain the agreement-based authorization of the client and the bank respectively, which consents to its sending of payment order to the bank where the client opens the account and to the withdrawal of funds from the account.
(2) The bank shall, in advance or in the first transaction, independently recognize the client's identity and directly sign an authorization agreement with the client to expressly agree on the applicable scope of withdrawal and trading verification methods, set the limit of each transaction and accumulated transactions on a single day commensurate with the client's risk tolerance, and make an undertaking on unconditional assumption of advance compensation for the losses caused by the risks of such type of transactions in full amount.
(3) The payment institution shall not verify transactions on behalf of the bank, except small-sum payment businesses of which the amount of each transaction is not more than 200 yuan, payment for public undertakings, payment of taxes and fees, credit card repayment and the payee's other fixed payment businesses occurring on a periodical basis, and the circumstances prescribed in Article 37.
Article 11 A payment institution shall conduct correlation management of all payment accounts opened by a same client in the institution, and conduct categorized management of individual payment accounts according to the following requirements:
(1) For an individual client that passes the verification of basic identity information in a non-face-to-face manner through at least one legal and safe external channel, and opens a payment account with the institution for the first time, the payment institution may open a Class-I payment account for him or her, the balance in the account may be used for consumption and account transfers only, and the accumulative amount of balance payment transactions shall not exceed 1,000 yuan as of the date when the account is opened (including account transfer from the payment account to the client's same-name bank account).
(2) For an individual client whose identity is verified by the payment institution or by a partner authorized by the payment institution face to face, or whose basic identity information is subject to multiple cross-validation by at least three legal and safe external channels in a non-face-to-face manner, the payment institution may open a Class-II payment account for him or her, the balance in the account may only be used for consumption and account transfer, and the accumulative amount of balance payment transactions in all payment accounts during a year shall not exceed 100,000 yuan (excluding account transfers from the payment account to the client's same-name bank account).
(3) For an individual client whose identity is verified by the payment institution or by a partner authorized by the payment institution face to face, or whose basic identity information is subject to multiple cross-validation by at least five legal and safe external channels in a non-face-to-face manner, the payment institution may open a Class-III payment account for him or her, the balance in the account may be used for consumption, account transfers, and the procurement of investment and wealth management and other financial products, and the accumulative amount of balance payment transactions in all payment accounts during a year shall not exceed 200,000 yuan (excluding account transfers from the payment account to the client's same-name bank account).
The channels for the external verification of clients' basic identity information shall include but not be limited to the database of government departments, the information system of commercial banks, and commercial databases, among others. The verification of individual clients' basic identity information through commercial banks shall apply to Class-I bank accounts or credit cards.
Article 12 Where a payment institution handles account transfers between a bank account and a payment account, the relevant bank account and payment account shall belong to the same client.
The payment institution shall, as agreed upon with clients, handle account transfers between payment accounts and clients' bank accounts in a timely manner, and shall not limit the number of account transfers from Class-II and Class-III payment accounts to clients' bank accounts.
Article 13 Where a payment institution handles account transfers from prepaid cards issued by it to payment accounts, it shall conduct separate management of balance of account transfer from prepaid cards to payment accounts in accordance with the Administrative Measures for the Prepaid Card Business of Payment Institutions ( Announcement No. 12 [2012], PBC ), and the balance may only be used for consumption, and cash-out or cash-out in any disguised form through account transfer, procurement of investment and wealth management and other financial products, and other forms are prohibited.
Article 14 A payment institution shall ensure that trading information is true, complete, trackable and consistent during the entire payment process, and shall not falsify or conceal any trading information. Trading information shall include but not be limited to:
(1) trading channel, trading terminal or interface type, trading type, trading amount, trading time, and the name and code of the franchised merchant directly providing clients with goods or services, and the merchant category code set according to the standards of the state and the financial industry;
(2) name of the payer and payee, account number of the payment account for receipts and payments or the name of the bank that opens the bank account and the account number;
(3) information on identity verification and trading authorization of the payer;
(4) label through which trading can be effectively tracked; and
(5) purpose and cause of payment for the account transfer business of corporate clients, of which a single transaction exceeds 50,000 yuan.
Article 15 Where funds shall be transferred back due to cancellation (revocation) of transactions, goods return, transaction failure or investment and wealth management or redemption of other financial products or any other reason, corresponding funds shall be transferred back to the original account where funds are withdrawn.
Article 16 A payment institution shall, after confirming clients' identities and true wishes, handle online payment for clients in a timely manner, and retain operational records in a truthful and complete manner for at least five years as of the date when the operation comes into force.
Clients' operation shall include but not be limited to registration and deregistration, identity recognition and trading verification, modification of identity information and contact information, adjustment of business functions, adjustment of trading limit, modification of fund payment and receipt forms, modification or reporting the loss of password, digital certificate, and electronic signature.
Chapter IV Risk Management and Protection of Clients' Rights and Interests
Article 17 A payment institution shall, by taking into comprehensive consideration clients' types, identity verification methods, the features of trading behaviors, credit status and other factors, establish management rules and mechanisms on clients' risk rating, and make dynamic adjustments to clients' risk rating and the relevant risk control measures.
The payment institution shall, based on clients' risk rating, trading verification methods, trading channels, trading terminals or interface types, trading categories, trading amount, trading time, type of merchants and other factors, establish trading risk management rules and a trading monitoring system, and in a timely manner, take such measures as investigation and verification, delaying settlement and terminating services against suspected fraud, cash-out, money laundering, illegal fund raising, financing of terrorism, etc.
Article 18 A payment institution shall fully warn clients of the potential risks of the online payment business, disclose in a timely manner new means of committing crimes by offenders, offer necessary safety education to clients, and give risk warnings on high-risk businesses before and during operations.
Where a payment institution provides online payment services for clients' procurement of financial products from a partner, it shall ensure that the partner has obtained the corresponding qualification for business operation and conducts business operation in accordance with the law, and at the time of first procurement, provide clients with the partner's information and product information, fully inform clients of relevant responsibilities, rights, obligations and potential risks, and assist clients in completing the conclusion of agreements with the partner.
Article 19 A payment institution shall establish and improve risk reserve rules and trading compensation rules, make advance compensation for fund losses in full amount in a timely manner if clients' reason that cannot be proved in an effective manner, and protect clients' lawful rights and interests.
The payment institution shall, prior to January 31 each year, announce on its website the risk incidents occurred in the previous year, the occurrence of and compensation for clients' losses caused by risks and other information. The payment institution shall faithfully report the aforesaid content, the provision, use and balance of risk reserve and other information in the annual supervision report.
Article 20 A payment institution shall, in accordance with the provisions of the PBC on the protection of clients' information, formulate effective measures to protect clients' information and a risk control mechanism, and perform the responsibilities for protecting clients' information.
The payment institution shall not store the magnetic stripe information or chip information of clients' bank cards, verification code, password or any other sensitive information, and as a general rule, shall not store the validity term of bank cards. If the payment institution does need to save the validity term of clients' bank cards for particular business needs, it shall obtain the authorization of the clients and the opening bank, and save such information in encryption.
The payment institution shall collect, use, save and transmit clients' information under the “minimum” principle and inform clients of the use objective and scope of the relevant information. The payment institution shall not provide clients' information to any other institution or individual unless it is otherwise prescribed in any law or regulation and it is confirmed and authorized by clients item by item.
Article 21 A payment institution shall agree in agreements to prohibit franchised merchants from saving the magnetic stripe information or chip information of clients' bank cards, verification code, validity term, password or any other sensitive information, and take periodical inspections, technical monitors and other necessary regulatory measures.
Where any franchised merchant saves the aforesaid sensitive information as in violation of the stipulation of any agreement, the payment institution shall immediately suspend or terminate the provision of online payment services, take effective measures to delete sensitive information, prevent the leakage of information, and in accordance with the law, bear the losses caused by and liabilities for the leakage of relevant information.
Article 22 A payment institution may adopt any or all of the following three types of elements to verify transactions during which clients make payment with the balance in payment accounts:
(1) Elements that only clients may have access to, such as static passwords.
(2) Unique elements held by clients only, that cannot be duplicated or utilized repeatedly, such as digital certificates and electronic signatures passing safety certification, and one time passwords generated and transmitted through safe channels.
(3) Elements of clients' physiological features, such as fingerprints.
The payment institution shall ensure that the elements it adopts are mutually independent from each other, and the destruction or leakage of some elements shall not lead to the destruction or leakage of other elements.
Article 23 Where a payment institution uses digital certificates and electronic signatures as verification elements, the generation of digital certificates and electronic signatures shall comply with the Electronic Signature Law of the People's Republic of China, the Specifications for Financial Electronic Certification (JR/T0118-2015) and other relevant provisions, so as to ensure the uniqueness and integrity of digital certificates and non-repudiation of transactions.
Where the payment institution adopts one-time passwords as a verification element, it shall effectively prevent the risks arising from the fact that the terminal receiving one-time passwords and the terminal sending payment orders are an identical physical device, and strictly control the validity term of one-time passwords within the minimum necessary time.
Where the payment institution adopts clients' physiological features as a verification element, it shall comply with the standards of the state and the financial industry as well as the relevant requirements for information security management, and prevent illegal saving, duplication or replay.
Article 24 A payment institution shall, according to the safety degree of trading verification methods, conduct limit management of individual clients that make payments with the balance of payment accounts according to the following requirements:
(1) For transactions verified by the payment institution through two or more types of valid elements including digital certificates and electronic signatures, the accumulative limit for a single day shall be independently agreed upon by both the payment institution and clients through agreements.
(2) For transactions verified by the payment institution through two or more types of valid elements including digital certificates and electronic signatures, the accumulative amount of all payment accounts of a single client for a single day shall not exceed 5,000 yuan (excluding account transfers from the payment account to the client's same-name bank account).
(3) For transactions verified by the payment institution through less than two types of valid elements, the accumulative amount of all payment accounts of a single client for a single day shall not exceed 1,000 yuan (excluding account transfers from the payment account to the client's same-name bank account), and the payment institution shall promise to unconditionally assume compensatory for the losses caused by the risks of such type of transactions.
Article 25 The system facilities and technologies relating to the online payment business of payment institutions shall continuously comply with the standards of the state and the financial industry as well as the relevant information security management requirements. If the relevant standards and requirements are not met, or the standards of the state or the financial industry have not been formed, the payment institution shall unconditionally assume the liability for making advance compensation for direct losses caused by the risks of such type of transactions.
Article 26 A payment institution shall have a safe and good online payment business processing system and backup system in China, make emergency response plans, and guarantee system security and business continuity.
Where the payment institution provides services for domestic transactions, it shall complete the processing of transactions through its domestic business processing system, and complete fund settlement within China.
Article 27 A payment institution shall take effective measures to guarantee that clients may confirm the names and account numbers of the payer and payee, trading amount and other trading information before the execution of payment orders, and notify clients of the results in a timely manner after the execution of trading orders.
Where a trading order cannot be processed in an ordinary manner due to overtime, no response or system failure, the payment institution shall remind the client in a timely manner; and if a payment order is not executed, the execution is inappropriate or delayed due to any reason attributable to the client, the payment institution shall actively notify the client to make modification or assist the client in taking remedial measures.
Article 28 A payment institution shall provide clients with trading information inquiry services within at least one year free of charge on websites with a legal and independent domain name, uniform service hotline and other channels, establish and improve error dispute and complaint handling rules, and assign professional departments and personnel to handle trading errors and clients' complaints in an accurate and timely manner based on facts. The payment institution shall inform clients of the channels for accurately obtaining the relevant services, and direct clients to effectively verify the authenticity of service channels.
The payment institution shall, before January 31 each year, announce on its website the number and type of clients' complaints occurred in the previous year, the proportion of complaints that have been handled, the complaint handling speed, etc.
Article 29 A payment institution shall fully respect clients' independent right of choice, shall not force clients to use the payment services it provides, and shall not obstruct clients from using the payment services provided by any other institution.
The payment institution shall fairly display all kinds of fund receipts and payment methods available to clients, shall not induce or force clients to open payment accounts or handle fund receipt and payment through payment accounts in any form, and shall not set any additional unreasonable conditions.
Article 30 Where a payment institution needs to suspend the provision of online payment services due to system upgrading, debugging or any other reason, it shall make an announcement at least five working days in advance.
The payment institution shall, before modifying the clauses of its agreement, raising its service charging rates or increasing any new charging item, publicize on the website or any other service channel for 30 consecutive days in a conspicuous manner, and confirm that clients have been aware of and accepted all details to be adjusted before clients handle the relevant businesses for the first time.
Chapter V Supervision and Administration
Article 31 To provide innovative products or services on online payment, cease the provision of products or services, or cooperate with any overseas institution in providing online payment services within China, a payment institution shall report to the PBC branch office at the place where the legal person is located at least 30 days in advance.
Where the payment institution has any serious risk incident, it shall report to the PBC branch office at the place where the legal person is located in a timely manner; and if it finds any suspected violation of law or crime, shall report to the public security authority at the same time.
Article 32 The PBC may, in light of the payment institution's qualification, risk management and control, especially clients' reserve management and other factors, determine the indicator system for the categorized supervision of payment institutions, establish work mechanisms for continuous categorized evaluation, and conduct dynamic categorized management of payment institutions. The specific measures shall be developed by the PBC separately.
Article 33 A payment institution rated as Class A and whose real-name Class II and Class III payment accounts account for 95% or more may take other methods to verify clients' identities so as to guarantee the effective implementation of the real-name system requirements, and, upon the assessment and recognition of the PBC branch office at the place where the legal person is located, report to the PBC for recordation.
Article 34 A payment institution rated as Class A and whose real-name Class II and Class III payment accounts account for 95% or more may manage corporate clients by reference to individual clients that conduct e-commerce business activities, that are ineligible for industrial and commercial registration but are permitted to operate without industrial and commercial registration according to relevant laws and regulations (hereinafter referred to as “individual sellers”), but shall establish a valid mechanism to continuously monitor its e-commerce business activities and conduct dynamic management of individual sellers, and shall report to the PBC branch office at the place where the legal person is located for recordation.
The individual sellers managed by the payment institution by reference to corporate clients shall at least meet the following conditions:
(1) The relevant e-commerce trading platform has examined and registered their true identity information according to the relevant laws and regulations, signed registration agreements with them, established registration archives and verified and updated the information on a periodical basis, verified the labels proving that the individual identity information is true and legal, and uploaded the labels on a conspicuous position of the home page concerning their e-commerce business activities.
(2) The payment institution has verified their identities according to the standards for the opening of Class III individual payment accounts.
(3) The payment institution has continuously conducted e-commerce business activities for six months and the accumulative business income charged through payment accounts during the period exceeds 200,000 yuan.
Article 35 Where a payment institution rated as Class A and whose real-name Class II and Class III payment accounts account for 95% or more handles the aforesaid account transfer business as mentioned in paragraph 1, Article 12 through payment accounts that have passed real-name confirmation and satisfied the real-name system management requirements, it is not required for the relevant bank account and payment account to belong to a same client. But the payment institution shall send to the banks at issue the trading information such as trading channels, trading terminals or interface type, trading type, name and account number of the payer and payee, in an accurate and complete manner in transactions.
Article 36 A payment institution rated as Class A and whose real-name Class II and Class III payment accounts account for 95% or more may raise the accumulative limit of payment made through the balance of Class II and Class III payment accounts that satisfy the real-name system management requirements to two times the limit prescribed in Article 24.
A payment institution rated as Class B or above and whose real-name Class II and Class III payment accounts account for 90% or more may raise the accumulative limit of payment made through the balance of Class II and Class III payment accounts that satisfy the real-name system management requirements to 1.5 times the limit prescribed in Article 24.
Article 37 When a payment institution rated as Class A handles the relevant business according to the provision of Article 10, it may, based on business requirements, independently agree with the bank on the circumstances under which the payment institution conducts trading verification on behalf of the bank, but the payment institution shall send such information as trading channels, trading terminals, interface type, trading type, names of merchants, codes of merchants, category codes of merchants, names and account numbers of the payer and payee, etc. to the bank in a complete and accurate manner during transactions; and the bank shall verify the security of the verification means or channels of the payment institution, and its management responsibilities for clients' fund security shall not be transferred because of the payment institution's verification on its behalf.
Article 38 For a payment institution rated as Class C or below, the real-name proportion of payment accounts is relatively low, and has significant influence upon the retail sale payment system or the non-cash payment confidence of the public, the PBC or its branch office may appropriately increase the requirements for the public disclosure of relevant information in an appropriate manner in accordance with provisions of Articles 19 and 28, and strengthen off-site supervision and on-site inspection.
Article 39 The PBC and its branch offices shall dynamically determine the regulatory provisions applicable to payment institutions and conduct continuous supervision by reference to the conditions corresponding to the aforesaid categorized management measures. If the categorized rating result and real-name proportion of payment accounts of the payment institution fail to meet the corresponding conditions of the aforesaid categorized management measures, the PBC and its branch offices shall strictly implement the provisions of Articles 10, 11, 12 and 24.
The PBC and its branch offices may, according to the requirements for social and economic development and the categorized management of payment institutions, make adjustments to the online payment business scope, model, functions, limit, business innovation and other relevant management measures of the payment institutions at appropriate times.
Article 40 Payment institutions shall join the Payment & Clearing Association of China, and accept the administration of industry self-disciplinary organizations.
The Payment & Clearing Association of China shall, according to these Measures, develop the industry self-disciplinary rules for the online payment business, establish a self-disciplinary examination mechanism, and organize the implementation of the rules after reporting them to the PBC for recordation. Self-disciplinary rules shall cover the model agreements signed by payment institutions and clients, specify the matters that shall be and shall not be recorded in agreements, and shall cover the specific content and standard format of information disclosed by payment institutions.
The Payment & Clearing Association of China shall establish credit undertaking rules, require payment institutions to make public undertakings on the provision of online payment services in accordance with laws and regulations in a standard format, guarantee clients' information security and fund security, protect clients' lawful rights and interests, and voluntarily accept restraint and punishments if they violate any law or regulation.
Chapter VI Legal Liability
Article 41 Where a payment institution that engages in the online payment business falls under any of the following circumstances, the PBC or its branch office shall punish it in accordance with the provision of Article 42 of the Measures for the Administration of Payment Services Provided by Non-Financial Institutions.
(1) It fails to establish as required management rules, such as clients' real-name system management, the opening and use of payment accounts, handling of error disputes and complaints, risk reserves and trading compensations, and emergency response plans, among others.
(2) It fails to establish as required a risk control mechanism, such as clients' risk rating management, payment account functions, limit management, clients' payment order verification and management, trading and information security management, and trading monitoring systems, among others, or fails to take effective risk control measures against the payment business as required.
(3) It fails to give risk warnings or discloses the relevant information as required.
(4) It fails to perform its reporting obligation as required.
Article 42 Where a payment institution that engages in the online payment business falls under any of the following circumstances, the PBC and its branch office shall punish it in accordance with the provision of Article 43 of the Measures for the Administration of Payment Services Provided by Non-Financial Institutions; and if the circumstances are serious, the PBC or its branch office shall punish it in accordance with the provision of Article 46 of the Law of the People's Republic of China on the People's Bank of China.
(1) It fails to comply with the relevant requirements for the business system facilities of payment institutions.
(2) It fails to comply with the standards of the state or the financial industry or the relevant information security management requirements, and the adopted digital certificates and electronic signatures fail to comply with the Electronic Signature Law of the People's Republic of China, the Specification for Financial Electronic Certification or any other provisions.
(3) It provides payment services for any illegal transactions or false transactions, or fails to take effective measures as required after finding that any client is suspected of involving in any violation of law or regulation.
(4) It fails to take the measure of verifying clients' payment orders as required.
(5) It fails to reflect the information on online payment transactions in a truthful, complete and accurate manner, or falsifies or conceals trading information.
(6) It fails to handle clients' information as required, or fails to perform the obligation of keeping clients' information confidential, which leads to the hidden risks of information leakage or leads to information leakage.
(7) It interferes in the clients' independent selection of payment service providers or fund receipt and payment methods.
(8) It discloses any false information to the public.
(9) It opens any payment account in violation of any regulation, or conducts financial business activities without approval.
Article 43 Any payment institution that violates the provisions on AML and CFT shall be punished in accordance with the relevant laws and regulations of the state.
Chapter VII Supplementary Provisions
Article 44 The relevant terms in these Measures shall have the following meanings:
“Corporate clients” means legal persons, other organizations or individual industrial and commercial households that receive payment services provided by payment institutions.
“Individual clients” means natural persons who receive payment services provided by payment institutions.
The basic identity information of a corporate client includes the client's name, address, business scope, uniform social credit code or organization code; the license or certificate proving that the client is formed in accordance with the law or may conduct business operation and social activities in accordance with the law, or the name, code and validity term of certificates or documents; the name of the legal representative (or the person in charge of the entity) or the person authorized to handle the business, as well as the category, number and validity term of the person's valid identity certificate.
The basic identity information of an individual client includes the client's name, nationality, gender, profession, address, contact information and the category, number and valid term of the client's valid identity certificate.
“Valid identity certificate of a legal person or any other organization as a client” means the certificate or document issued by the competent authority of the government, which is able to prove its legal and true identity, including but not limited to the business license, the legal person certificate, tax registration certificate and organization code certificate of a public institution; and the valid identity certificates of an individual industrial and commercial household include the business license, and the valid identity certificate of the business operator or the authorized handling person.
Valid identity certificates of an individual client include the resident identity card, if the client is a Chinese citizen who has registered permanent residence within the territory of China; and the resident identity card or household register, if the client is under the age of 16; the Mainland travel permit for Hong Kong or Macao residents, if the client is a resident in the Hong Kong Special Administrative Region or Macao Special Administrative Region; the Mainland travel permit for Taiwan residents, if the client is a resident in Taiwan; the Chinese passport, if the client is a Chinese citizen who is a permanent resident abroad; the passport or foreigner's permanent residence card, if the client is a foreign citizen (foreign border residents shall be governed by the provisions on border trade settlement); and other identification documents prescribed by laws and administrative regulations.
“Clients” means the entities as clients (corporate clients) or individuals (individual clients).
Article 45 These Measures shall be subject to interpretation and revision by the PBC.
Article 46 These Measures shall come into force on July 1, 2016.
