Tencent may receive "record" fine for banking regulation violations

by Adam Fitch  · 
Tencent may receive "record" fine for banking regulation violations

Chinese technology and entertainment conglomerate Tencent may receive a "record" fine for violating regulations relating to anti-money laundering, as reported by The Wall Street Journal.

The background: Firstly, let's establish just how big a player Tencent truly is in the gaming industry.

Riot Games
Tencent wholly owns Riot Games, which is behind wildly popular game League of Legends.

The penalty: The potential fine could reportedly be, at least, hundreds of millions of yuan.

  • WSJ has reported that the fine the company may be facing is due to the violation of central bank regulations on its mobile network WeChat Pay.
  • It's reported that financial regulators found that the network had broken China's rules against money laundering and failed to comply with "know your customer" and "know your business" regulations.
  • The People's Bank of China discovered the alleged violations in late 2021, according to the report, and it's also stated that WeChat Pay has been found to have permitted the transferring of funds and laundering through gambling.
  • At the time of publication, shares in Tencent have dropped 10.79% in value on the London Stock Exchange following the report. Likewise, shares are down 9.79% on the Hong Kong Stock Exchange following the story.
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