Paytm Payments Bank fined over ₹5 crore over money laundering
Upstox
1 min read • Updated: March 1, 2024, 8:33 PM
Summary
The financial intelligence unit had 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.
In a major setback, Paytm Payments Bank has been fined over ₹5 crore by the Financial Intelligence Unit-India (FIU-IND) over money laundering.
This development comes after Reserve Bank of India (RBI) ordered Paytm Payments Bank to stop accepting fresh deposits in its accounts and wallets by March 15.
“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,” a PIB release said.
It added that the “money generated from the illegal operations, i.e. proceeds of crime were routed and channelled through bank accounts maintained by these entities with the Paytm Payments Bank Ltd.”
After considering the written and oral submissions of the Paytm Payments Bank, the FIU-IND imposed a penalty of ₹5,49,00,000 in exercise of its powers under Section 13 of Prevention of Money Laundering Act (PMLA).