A Study On The Legal Risk Of Nets Union Clearing Platform

In the case of the third-party payment,the misappropriation of the funds of the client,the opacity of the “direct connection mode”,the opaque of the liquidation,and the risk of money laundering have not been eradicated.On August 6,2017,the Central Bank's Payment and Settlement Division issued the Notice of the People's Bank of China Payment and Settlement Division on the Transfer of Non-Bank Payment Institutions' Network Payment Services from Direct Connected Mode to the Nets Union Clearing Corporation,and restricted third party payment institutions to allocate funds data.The deadline for transfer to the newly established clearing platform has already decided.The establishment of the Nets Union Clearing Corporation is aimed at breaking the "direct connection mode" that appears without a clearing license,ending the third-party payment institution bypassing the central bank,and entering into separate agreements with commercial banks to carry out illegal liquidation to achieve centralized liquidation and transparency liquidation of funds.The legal risks involved in the operation of the the Nets Union Clearing Platform constitute three aspects: monopoly risk,operation of current laws and regulations to coordinate risks,and excessive supervision risks.As the unified clearing platform for network payment designated by the central bank,the operation of the Nets Union Clearing Platform is suspected of administrative monopoly;secondly,as the only online payment clearing institution in the payment clearing market,the abuse of market dominance is also the risk that the Nets Union Clearing Platform may face.In addition,the Nets Union Clearing Platform operates under the premise that the central bank has repeatedly issued relevant regulations and administrative normative documents,and there is a risk of conflict with existing laws and regulations in directly obtaining user information.Finally,as a monitoring tool for central banks to supervise third-party payments,the Nets Union Clearing Platform is highly vulnerable to administrative policies,creating the risk of over-regulation.The legal issues in the field of third-party payment's clearing and settlement are mainlybased on the regulation of deposit in the United States,the European Union,and Chinese Taiwan.The China UnionPay,which was established earlier in China,also provides a feasible solution for the potential monopoly risk of the Nets Union Clearing Platform.The establishment of the Nets Union Clearing Platform will have positive and negative effects on social and economic benefits..Under the premise of positively improving its social and economic benefits and ensuring financial security,it should find a rational way to solve legal risks.First,central bank supervision returns to competitive neutrality,reduces restrictions on the development of third-party payment institutions,and relaxes market access after conditions permit,ensuring fair competition;second,scientifically defines the concept of“relevant market” in the payment and clearing market to ensure Monopoly law enforcement agencies scientific law enforcement;Third,unified rules,clean up relevant administrative norms documents to reduce conflicts of law application;Fourth,play the superiority of the company system,reduce the dependence of administrative decision-making;Fifth,coordinate supervision to pay the clearing market and strengthen the regulatory force.