New Delhi, March 1: The Financial Intelligence Unit-India (FIU-IND) has levied a penalty of Rs 5.49 crore on Paytm Payments Bank Ltd for breaching money laundering prevention regulations, stated the Union Finance Ministry on Friday.
According to the Finance Ministry, FIU-IND conducted a review of Paytm Payments Bank Ltd based on information from law enforcement agencies regarding entities involved in illegal activities, including online gambling. The proceeds from these illicit operations were channeled through bank accounts held by these entities with Paytm Payments Bank Ltd.
After examining the documents, FIU-IND issued a Show Cause Notice to the bank for violating anti-money laundering rules and KYC safeguards related to payout services. Following a thorough review of the submissions from Paytm Payments Bank Ltd, the Director of FIU-IND concluded that the charges were valid, leading to the imposition of the penalty.
The penalty of Rs 5.49 crore serves as a consequence of Paytm Payments Bank Ltd’s non-compliance with money laundering prevention rules. The financial institution was found to have facilitated the transfer of funds from illegal activities, prompting FIU-IND to take action against the bank.
