New Delhi: The Financial Intelligence Unit-India (FIU-IND) has imposed a whopping Rs 5.49 crore penalty on the Paytm Payments Bank for violating the country's anti-money laundering rules, the Finance Ministry said here on Friday.
The FIU-IND initiated a review of Paytm Payments Bank on receipt of specific information from the law enforcement agencies in respect of several entities and their network of businesses engaged in a number of illegal acts, including organising and facilitating online gambling.
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, the Finance Ministry said. "The Financial Intelligence Unit-India (FIU-IND),... has imposed a monetary penalty of Rs 5.49 crore on the Paytm Payments Bank Ltd with reference to the violations of its obligations under the PMLA (Prevention of Money Laundering Act)," the ministry said.
The FIU passed its order imposing the penalty on February 15. The FIU action follows the Reserve Bank of India's (RBI's) directive which was issued on January 31 barring the Paytm Payments Bank from accepting fresh deposits or credits in the accounts of its customers from February 29. The date was later extended to March 15.
