China fines UniCredit $1.50 million for embezzlement


China’s banking regulator, China Banking and Insurance Regulatory Commission (CBIRC) has fined UniCredit Bank AG a total of 10.3 million yuan for embezzlement.

The fine which is an equivalent of $1.50 million was slammed on the Chinese unit of the bank after its staff was alleged to have transferred “a huge amount” of money belonging to a client without authorization.

The Shanghai-based regulator said the employee used a supervisor password to make the transfer, a “severe loopholes on risk management and internal controls” and “insufficient prevention on moral hazard” at the bank.

UniCredit has not commented on the matter.