Study On Risk Identification And Control Of Unionpay Card Cross-Border Payment In The Context Of Lancang-Mekong Cooperation

In September 2018,the ministry of commerce issued the compilation requirements of “the five-year development plan for cross-border economic cooperation among Lancang-Mekong countries(2019-2023)”to the department of commerce of Yunnan province.Among them,the establishment of a multilateral cross-border e-commerce platform and cross-border payment system is a key area of cooperation in the plan.This will also provide new opportunities for the development of supporting facilities related to cross-border payment;especially for the security,convenience and timeliness of cross-border payment.The layout of China Unionpay in the Lancang-Mekong region was started in 2005.Due to the different time of entry into the Lancang-Mekong markets and the influence of different political and economic environments in different countries,the development of cross-border payment by Unionpay card varies from country to country and is also threatened by various risk factors.In particular,the development level of cross-border payment in Laos,Myanmar and Cambodia is relatively low,and an integrated online and offline cross-border payment system has not yet been established.Besides,there is no sound regulatory system in cross-border payment,so it is difficult to supervise and verify cross-border payment transaction data,which will undoubtedly make it more difficult for the state to supervise cross-border capital and increase the risk of money laundering and smuggling.Therefore,this paper will focus on the risk identification and risk control of Unionpay card in cross-border payment in the Lancang-Mekong region.Based on the framework of "Lancang-Mekong cooperation" and from the perspective of cross-border payment,this paper discusses the development status and risks of Unionpay card cross-border payment in Lancang-Mekong region,and studies the main reasons for the unbalanced development of Unionpay card in Lancang-Mekong countries.Based on the risk identification and risk control theory,the risk of Unionpay card cross-border payment was identified by means of expert interview and questionnaire survey,and the main risk factors affecting Unionpay card cross-border payment were established.From the perspective of market regulation and risk control,this paper combined with factor analysis method to analyze and screen the identified risk factors.Finally,through case analysis,specific measures to deal with cross-border payment risks are summarized,and countermeasures and Suggestions for risk control are proposed based on core risk factors.The author made use of the internship opportunity in Yunnan branch of China Unionpay to carry out field research and obtained the research data closely related to the cross-border payment of Unionpay card.Based on the comprehensive risk management framework and expert interviews,a risk identification system for Unionpay card cross-border payment was established,and a questionnaire was designed and issued.Through the analysis of the questionnaire data,the core risk index of the cross-border payment of Unionpay card in the Lancang-Mekong region was established.The analysis results show that the core risks are system risks,information technology risks and operational management risks.The system risks are composed of macroeconomic risks,policy and legal risks,industrial risks and exchange rate risks.Information technology risk includes information storage risk,information transaction risk,network environment risk and data security risk.Operational management risks consist of money laundering risks,operational risks,organizational risks,credit risks,decision risks,tax risks and product category risks.Then,based on the case of cross-border payment of Unionpay card,the paper summarizes the risks in the process of cross-border payment of Unionpay card,and puts forward the corresponding countermeasures and Suggestions according to the analysis results.As there are few studies on the risk control of Unionpay card in the Lancang-Mekong region,the innovation of this paper is to provide theoretical supplement for the study on the risk of cross-border payment of Unionpay card,and also to provide reference for the establishment of the risk prevention and control system of cross-border payment of Unionpay card.