Financial Intelligence Unit-India imposed ₹5.49 crore penalty on Paytm Payments Bank for violating the obligations under the Prevention of Money Laundering Act (PMLA). The heavy fine came after the review of Paytm Payments Bank operations based on the specific information from law enforcement agencies, the Ministry of Finance said in a release on Friday.
The law enforcement agencies shared crucial information with Ministry of Finance about the role of Paytm Payments Bank in routing and channelizing the proceeds of crime of businesses engaged in a number of illegal acts, including organising and facilitating online gambling.
“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, i.e. proceeds of crime were routed and channelled through bank accounts maintained by these entities with the Paytm Payments Bank Ltd,” a release from the Finance Ministry said.
The government heard the oral and written submissions from the representatives of the Paytm Payments Bank and concluded that the charges against the company are substantiated. “Consequently, vide order dated February 15th, 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,” the release added.
This is a developing story, will be updated with more inputs
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Published: 01 Mar 2024, 07:06 PM IST