In a statement released by the central bank on Sunday, it said Ant Group lacked a sound governance mechanism, defied regulatory compliance requirements and engaged in regulatory arbitrage. Regulators ordered Ant Group to establish a financial holding company and hold sufficient capital. They also said that Ant Group should return to its payments origins, enhance transparency around transactions and prohibit unfair competition. The company should improve corporate governance and ensuring that it complies with regulatory requirements for its businesses. Responding to that Ant Group said that it would comply with regulatory requirements and enhance risk management and control, and that a working group would be set up to make the necessary rectifications.

Source: Mint December 29, 2020 05:26 UTC