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July 7 (UPI) -- The People's Bank of China on Friday announced a $985 million fine against Ant Group, the financial arm of online retail giant Alibaba. The bank says the fine was in response to violations by Ant Group and its subsidiaries around anti-money laundering regulations and corporate governance.
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Though so-called platform companies like Ant Group, which often provide a forum to exchange goods and services, have come under fire from Chinese regulators, the People's Bank of China says most issues with the companies "have been rectified."
"The work focus of the financial management department has shifted from pushing centralized rectification to normal supervision," the bank said.
The company issued a statement Friday saying it would "comply with the terms of the penalty in all earnestness and sincerity and continue to further enhance our compliance governance."
Ant Group, its subsidiaries, and their founder, Chinese billionaire Jack Ma, have come under increased scrutiny from the Chinese government.
A $37 billion initial public offering was blocked by Chinese regulators in 2020 and in 2021 Alibaba was fined $2.8 billion for alleged antitrust violations.
In March, Alibaba Group announced that it would split into six distinct corporate entities.
