In April 26th, the China payment and liquidation industry operation report (2018) issued by the China Association for payment and liquidation (hereinafter referred to as the report) disclosed the above situation. In the review of the report, Fan Shuangwen, the deputy director of the payment and Settlement Department of the peoples Bank of China, made unnamed and harsh criticism of some industry disorder and institutional behavior. In particular, influential institutions in the market should take the lead in observing the rules according to law. We should not think that we are too big to fail to think that we are large and unable to manage, and ignore these rules. The phrase was issued on the same day as an industry warning. Pay gold concentrates more than 100 billion In 2017, strict supervision went through the development of the payment and settlement industry, and the top-level design and regulatory system and self-discipline norms of the industry were further standardized. In June 26th last year, the central bank announced the result of the renewal of the fourth party third party payment license renewal, 9 of the 93 institutions did not renew the license plate, and the partial payment business of the 2 institutions did not renew. The main reasons included the violation of the regulations on the management of the customer payment, the violation of the regulations on the management of the bank card receipts, the violation of the anti money laundering regulations and the provisions of the anti money laundering. There are major defects in the payment of business facilities security and risk monitoring. In January 5th this year, the fifth batch of third party payment agency licenses renewed, 4 of the 25 participating agencies did not renew. In the medium to long term, the central bank is promoting the dynamic management mechanism of the payment market. In accordance with the principle of total control, structural optimization, quality improvement and orderly development, we can achieve the survival of the fittest through renewal examination. The report pointed out that before the payment of the deposit, the payment institutions opened accounts in many banks to disperse the deposit, on average, each payment institution opened up to 13 gold accounts, up to 70, and buried a lot of hidden dangers. Some organizations misappropriated the customers payment for the purchase of financial products or other high risk investment. The 3 institutions, Guangdong Yimin, Zhejiang Yi Shi and Shanghai Chang purchase, were cancelled due to the large amount of misappropriation of the customers payment. In addition, non bank institutions handle cross-border bank liquidation through the reserve accounts of different banks, which are beyond the scope of operation. There are even institutions that facilitate access to money laundering and other criminal activities, increasing the risk of cross - system transmission of financial risks. The reserve deposit is also not conducive to the payment of fund management and liquidity risk. What is more, many payment agencies deviate from the payment service main business by expanding the scale of customer payment and lying down to eat interest. According to incomplete statistics, from 2012 to the beginning of 2017, 13 third party payment institutions in China have been punished for violating customer payment related regulations, with the maximum fine of nearly 30 million yuan. Since the centralized payment of self payment, the deposit payment ratio has increased from about 20% to about 50%. By the end of 2017, the centralized deposit reserve fund had reached 99 billion 490 million yuan. Unlawful operation and payment of business, violation of regulations for unlicensed institutions to provide trading channels or interfaces and other illegal activities were also severely punished. In November 2017, the central bank issued the notice on Further Strengthening the work regulation of unlicensed operating payment, focusing on the regulation of undocumented Payment institutions, and required the certified Payment institutions to conduct self-examination. By the end of 2017, the total number of unlicensed business payment institutions was 243, and 141 of them had been disposed of. In August 2017, 8 ministries and commissions, such as the Ministry of Commerce, the Ministry of education and the Ministry of public security, carried out a joint attack on the illegal operation of prepaid cards in August 2017. Limited time correction of executing ineffective institutions Small and convenient mobile payment businesses continue to break out. According to the report, in 2017, domestic banking institutions handled 37 billion 552 million mobile payment businesses, which amounted to 202 trillion and 930 billion yuan, up 46.06% and 28.80% respectively over the same period last year. In contrast, the third party payment agencies handled 239 billion 262 million mobile payment businesses, with an amount of 105 trillion and 110 billion yuan, up 146.53% and 106.06% respectively over the same period. However, the security of mobile payment is not perfect enough. Fan Shuangwen pointed out that although static code payment is easy to print and low in cost, it is easy to replace the Trojan horse virus by illegal elements, resulting in the loss of customers funds. Some node virus infection will even affect the information security of the entire customer. The central bank has received a large number of relevant case complaints. In response to such problems, in December 27th of last year, the peoples Bank of China issued the code for bar code payment (Trial Implementation). At the same time, the security technology and the admissible terminal technology are matched with two specifications. The code will be divided into ABCD four grades according to the technical characteristics of barcode payment. According to the different security level, there is no amount limited to the class D 500 yuan limit. The above specifications have been implemented since April 1, 2018. April 1st has passed, and now almost a month, from the implementation effect, it is actually not very in place. Fan Shuangwen said, there are individual payment institutions in this regard is still not clearly implemented, deliberately evading. Basically, its still a game with policies and countermeasures. Fan Shuangwen introduced, the central bank received complaints in this area, also interviewed the relevant agencies, and asked to correct the time limit, the next step will be further regulatory measures. There are market organizations that argue that the rate of fraud and loss is not too high before the cap. In this regard, Fan Wen pointed out that even if the fraud rate, loss rate may not be high, but due to the large number of customer base of the payment institutions, from the absolute number is still a large group. Some local emergencies will affect a large number of people. From the point of view of the merchant, the central bank allows the use of static code to take into account the operating costs of small and micro businesses, and to follow the institutional arrangements made by the idea of small and efficient and large partial emphasis on safety. If a large number of business transactions exceed a single 500 yuan, then we should take the initiative to raise the security level of bar code payment. Fan Shuangwen emphasized that a policy formulation is made by listening to the opinions of the market, and it is normal to have different voices. But since the rules have been worked out, it is necessary to conscientiously enforce the rules. In the process of implementation, we can sum up experience and lessons, and improve rules as soon as possible, rather than simply do not enforce this rule. Dont spend your energy trying to escape the rules, and dont just ignore the rules of your own interests, especially the big influential institutions in the market, and take the lead in keeping the rules according to law. Fan Shuangwen stressed. Source: financial network editor: Hou Wei Cheng _NT4124 Fan Shuangwen emphasized that a policy formulation is made by listening to the opinions of the market, and it is normal to have different voices. But since the rules have been worked out, it is necessary to conscientiously enforce the rules. In the process of implementation, we can sum up experience and lessons, and improve rules as soon as possible, rather than simply do not enforce this rule. Dont spend your energy trying to escape the rules, and dont just ignore the rules of your own interests, especially the big influential institutions in the market, and take the lead in keeping the rules according to law. Fan Shuangwen stressed.