Financial Intelligence Unit slaps Rs 5.49 cr penalty on Paytm Payments Bank
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New Delhi, March 1: The Financial Intelligence Unit-India (FIU-IND) has imposed a penalty of Rs 5.49 crore on Paytm Payments Bank Ltd for violations of money laundering prevention rules, the Union Finance Ministry said on Friday.
"FIU-IND initiated a review of the Paytm Payments Bank Ltd on receipt of specific information from law enforcement agencies in respect of few entities and their network of businesses engaged in a number of illegal acts, including organising and facilitating online gambling. Further, the money generated from these illegal operations, that is, proceeds of crime were routed and channelled through bank accounts maintained by these entities with the Paytm Payments Bank Ltd," the Finance Ministry said.
Upon scrutiny of the documents on record, FIU-IND issued a compliance Show Cause Notice to the bank for its violations of prevention of money laundering rules and KYC safeguards in respect of payout services.
After considering the written and oral submissions of the Paytm Payments Bank Ltd, Director, FIU-IND, based on the voluminous material available on record, found that the charges against Paytm were substantiated. Consequently, the penalty was imposed, the Finance Ministry said.
"FIU-IND initiated a review of the Paytm Payments Bank Ltd on receipt of specific information from law enforcement agencies in respect of few entities and their network of businesses engaged in a number of illegal acts, including organising and facilitating online gambling. Further, the money generated from these illegal operations, that is, proceeds of crime were routed and channelled through bank accounts maintained by these entities with the Paytm Payments Bank Ltd," the Finance Ministry said.
Upon scrutiny of the documents on record, FIU-IND issued a compliance Show Cause Notice to the bank for its violations of prevention of money laundering rules and KYC safeguards in respect of payout services.
After considering the written and oral submissions of the Paytm Payments Bank Ltd, Director, FIU-IND, based on the voluminous material available on record, found that the charges against Paytm were substantiated. Consequently, the penalty was imposed, the Finance Ministry said.
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