Paytm Bank fined Rs 5.49 crore for money laundering
New Delhi, March 1
The Financial Intelligence Unit-India (FIU-IND) has slapped a penalty of Rs 5.49 crore on Paytm Payments Bank Ltd (PPBL), accusing it of laundering money received from online gambling among other charges.
The FIU-IND had initiated an examination of the PPBL after law enforcement agencies tipped it off about its network of businesses engaged in a number of illegal acts, including organising and facilitating online gambling, stated an official news release.
Further, the proceeds of crime or were routed and channelled through bank accounts maintained by these entities with the PPBL.
The FIU-IND found four violations under the Prevention of Money Laundering Act (PMLA) and applicable guidelines and advisories issued by the Director FIU-IND. It issued three show-cause notices for violation of the PML (Maintenance of Records) Rules, 2005, and one for violation of rules relating to KYC safeguards.
After considering the written and oral submissions of the PPBL, Director, FIU-IND, based on the voluminous material available on record, found that the charges against the PPBL were substantiated. “Consequently, vide order dated February 15, 2024, in exercise of his powers under Section 13, PMLA, it was found to be appropriate to impose a penalty of Rs 5,49,00,000,” stated the official news release.
The FIU action follows RBI’s January 31 directive barring PPBL from accepting fresh deposits or credits in the accounts of its customers from February 29. The date was later extended to March 15.
