Paytm Payments Bank Ltd. has been fined with a heavy penalty of Rs 5,49,00,000 by the Financial Intelligence Unit – India (FIU-IND) for alleged violations of anti-money laundering regulations under the Prevention of Money Laundering Act (PMLA).
This action is a result of allegations made by Paytm Payments Bank Ltd. that FIU-IND, operating under the PMLA, has noticed.The Prevention of Money Laundering Act (PMLA) anti-money laundering regulations are allegedly being broken, and Paytm Payments Bank is facing the fine as a result.”The penalty pertains to issues within a business segment that was discontinued two years ago,” a Paytm Payments Bank spokeswoman informed IndiaToday.in. We have improved our reporting procedures to the Financial Intelligence Unit (FIU) and monitoring systems since then.
The bank was charged with breaking instructions provided by the Director of FIU-IND as well as the PMLA and its related legislation.Law enforcement agencies’ specific knowledge about certain businesses they thought to be engaging in unlawful activities, including internet gambling, served as the impetus for the inquiry.
Allegations surfaced that the earnings from these endeavours, classified as illicit gains, were being routed via accounts maintained with Paytm Payments Bank Ltd.Following a thorough review of the available records, FIU IND sent a notice to Paytm Payments Bank Ltd. for violating multiple PML Rules, pertaining to AML/CFT/KYC protocols for payout services and beneficiary accounts, including Rules 7(3) and 2(1)(g), Rule 8(2) in connection with Rule 3(1)(D) and Rule 2(1)(g), Rule 9(12), and Rule 9(14).
The Director FIU-IND determined that the allegations were supported after taking into account the written and oral arguments presented by Paytm Payments Bank Ltd. As a result, the bank was hit with a penalty of Rs 5,49,00,000, in accordance with the authority that the PMLA granted FIU-IND.
In an order dated February 15, 2024, the imposition of a penalty of Rs 5,49,00,000 was judged justified, use the authority granted by Section 13 of the PMLA.