The People s Bank of China (PBC), the China Banking Regulatory Commission (CBRC) and several other government agencies vowed to take coordinated measures to better manage bankcard-related risks and fight crimes on bankcards on a joint conference on March 31.
Officials from the central bank, the banking regulator, the Ministry of Public Security and the State Administration for Industry and Commerce participated in the conference, which was also joined by executives from major banks, including the Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, and China Unionpay, i.e. the country s bankcard association.
In addressing the meeting, Deputy Governor Su Ning of the PBC pointed out that coordination and cooperation are needed in order to adopt forceful measures to prevent bankcard-related risks. He specified several areas where efforts should be strengthened to improve bankcard security.
Banks should strictly follow the real-name account rules and conduct adequate background check when opening accounts and issuing credit cards, Su said. Verification codes and standard chips would be used to make bankcards more secure. Banks, merchants and clearing institutions should make efforts to ensure the security of card holders information. Commercial lenders should step up monitoring of bankcard-based transactions, meet anti-money laundering requirements, and introduce tighter regulations on self-help fund transfer services, Su added.
On managing the risks concerning bankcard acceptance, the Deputy Governor noted that banks should strengthen management on merchants, and authorities should enhance oversight on non-financial institutions that accept bankcards and organizations that provide bankcard outsourcing services, and adopt tougher management and security measures on Point of Sale terminals and ATMs. The China Unionpay should also help improve risk management.
Supervision on the bankcard market will be strengthened, Su said, who also called on relevant government agencies to make concerted efforts to combat bankcard crimes.
Bankcards has become the most frequently used means of payment other than cash in China, with nearly 25 percent of retail sales being processed through the bankcard system. However, surging crimes targeting bankcards in recent years, including cashing out, fake cards and frauds, are posing increasing threats to card issuers and holders. The government gives much attention to bankcard-related crimes and has asked the PBC and relevant government agencies to come up with concrete measures to improve bankcard security and fight these crimes.
