Core Viewpoint - The People's Bank of China (PBOC) has expanded direct anti-money laundering (AML) supervision to include major third-party payment institutions like Alipay and WeChat Pay, reflecting the growing importance of these entities in the financial ecosystem [3][5][8]. Group 1: Regulatory Changes - The PBOC has revised the notification regarding the implementation of the AML supervision management measures, which now includes a broader list of financial institutions under direct supervision [2][12]. - The updated list of institutions under PBOC's direct AML supervision now includes three additional entities: Alipay, WeChat Pay, and the Network Union Clearing Co., Ltd [5][6]. - The regulatory framework is evolving to address new challenges in the AML sector, necessitating a more robust supervisory approach to enhance financial risk management [4][15]. Group 2: Market Position of Third-Party Payment Institutions - Alipay and WeChat Pay hold significant market shares in China's third-party internet payment market, with 20.70% and 18.31% respectively, while UnionPay leads with 26.63% [6]. - The combined market share of Alipay and WeChat Pay indicates a "duopoly" in the non-bank payment sector, highlighting their systemic importance [6][7]. Group 3: AML Compliance and Challenges - The third-party payment sector has faced scrutiny, with the PBOC issuing 55 payment fines totaling approximately 174 million yuan in 2024, indicating a focus on AML compliance and customer identity verification [10]. - The revised notification emphasizes the need for financial institutions to report significant AML-related incidents and submit annual AML work reports to enhance compliance [16][17].