On September 30, financial sector news revealed that China Zheshang Bank Co., Ltd. has been issued a warning and fined 2.9599 million yuan for seven regulatory violations, according to the administrative penalty information disclosure from the People's Bank of China.

The penalty encompasses the following violation categories: 1. Violation of account management regulations; 2. Violation of merchant management regulations; 3. Violation of anti-counterfeit currency business management regulations; 4. Unauthorized occupation or retention of fiscal deposits or funds; 5. Violation of credit information collection, provision, inquiry and related management regulations; 6. Failure to fulfill customer identity verification obligations as required; 7. Failure to submit large-value transaction reports or suspicious transaction reports as required.

Additionally, several executives have been individually penalized. Song (former General Manager of Operations Management Department at China Zheshang Bank Co., Ltd.) was warned and fined 70,000 yuan for bearing responsibility for violations of account management regulations and failure to submit large-value transaction reports or suspicious transaction reports as required. Lu (former Assistant General Manager of Enterprise Experience Center, Network Finance Department at China Zheshang Bank Co., Ltd.) was warned and fined 50,000 yuan for bearing responsibility for violations of merchant management regulations. Sun (former staff member of Risk Management Center, Credit Card (Consumer Finance) Department at China Zheshang Bank Co., Ltd.) was fined 11,000 yuan for bearing responsibility for violations of credit information collection, provision, inquiry and related management regulations. Feng (former staff member of Small Enterprise and Personal Banking Review Department, Hangzhou Branch of China Zheshang Bank Co., Ltd.) was fined 11,000 yuan for bearing responsibility for violations of credit information collection, provision, inquiry and related management regulations. Zheng (former Deputy General Manager of Small Enterprise Credit Center (Inclusive Finance Business Department) at China Zheshang Bank Co., Ltd.) was fined 10,000 yuan for bearing responsibility for failure to fulfill customer identity verification obligations as required. Yang (former General Manager of Financial Technology Department at China Zheshang Bank Co., Ltd.) was fined 20,000 yuan for bearing responsibility for failure to submit large-value transaction reports or suspicious transaction reports as required. Shi (former General Manager of Network Finance Department at China Zheshang Bank Co., Ltd.) was fined 10,000 yuan for bearing responsibility for failure to submit large-value transaction reports or suspicious transaction reports as required.