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The Financial Intelligence Unit-India, FIU-IND, has imposed a monetary penalty of 5.49 crore rupees on Paytm Payments Bank Ltd with reference to violations of its obligations under Prevention of Money Laundering Act. Finance Ministry said in a statement that FIU-IND initiated a review of 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.
These include organising and facilitating online gambling. The money generated from these illegal operations were routed and channeled through bank accounts maintained by these entities with the Paytm Payments Bank Ltd.
Earlier, FIU IND issued a compliance Show Cause Notice to the bank for its violations. After considering the written and oral submissions of the bank, FIU-IND found that the charges against Paytm were substantiated based on the voluminous material available on record. In exercise of his powers under Section 13 of PMLA, Director, FIU IND imposed the penalty of five crore forty nine lakh rupees on the bank.