On the afternoon of December 31 2011, the third batch of licenses for third-party payment service was announced on the website of People’s Bank of China, marking a milestone for numerous service providers. This time, 61 companies were granted licenses, including Jinjiang International E-commerce Co., Ltd. (“Jinjiang E-commerce”), which was advised by Dacheng.
Jinjiang E-commerce, founded by Jinjiang International (Group) Co., Ltd., specializes in online sales of tourism products. Jinjiang International (Group) Co., Ltd. is currently one of the largest state-owned tourism enterprises in China. Jinjiang Hotel, one of its business units, is ranked 13th among the world’s top 300 hotels and 1st in Asia. The hotel group is also the most influential one in China, heading the list of China’s top 20.
On July 29 2011, a Dacheng team led by senior partner Xu Yongqian won the bid to act as legal counsel for Jinjiang E-commerce on third-party payment business. Following the signing of a service contract, Dacheng started to undertake various legal tasks, including the establishment of an anti-money laundering mechanism, an internal control system, a legal risk management system, the drafting and review of application materials, contacting relevant regulatory agencies, etc. Their half-year work, characterized by expertise, diligence and efficiency, won the clients’ trust and created value for them. Their cooperation is not only a groundbreaking one for the two sides, but also a useful attempt that opens the door for Dacheng in the new area of third-party payment service.
Third-party payment service, provided by non-financial institutions acting as intermediary between payers and payees, refers to partial or complete monetary fund transfer service such as online payment, issuance and service of prepaid cards and bank card acquiring. According to “Administrative Measures for the Payment Services Provided by Non-financial Institutions” that took effect on September 1 2010, third-party payment service providers are required to apply for a license from the central back before conducting relevant business. So far, 101 companies have been licensed.
Beijing Dacheng Law Offices, LLP ("大成") is an independent law firm, and not a member or affiliate of Dentons. 大成 is a partnership law firm organized under the laws of the People’s Republic of China, and is Dentons' Preferred Law Firm in China, with offices in more than 50 locations throughout China. Dentons Group (a Swiss Verein) ("Dentons") is a separate international law firm with members and affiliates in more than 160 locations around the world, including Hong Kong SAR, China. For more information, please see dacheng.com/legal-notices or dentons.com/legal-notices.
