China’s securities watchdog on Sept 11 announced punishments for five brokers for illegal operations.

The five brokers include Huatai Securities, Haitong Securities, Guangfa Securities, Founder Securities and Zheshang Futures, according to the China Securities Regulatory Commission (CSRC).

The first four brokers were accused of failing to check and verify clients’ real identities, while Zheshang Futures was accused of flawed risk control.

The watchdog will confiscate their illegal profits and fine them.

Haitong Securities will hand over 28.65 million yuan ($4.48 million) in illegal profits and 85.96 million in fines. Huatai Securities will turn in 18.23 million yuan in illegal profits and 54.7 million yuan in fines.

Brokers should strictly follow regulations to verify clients’ identities and control risks, the CSRC said in an online statement.