The Financial Intelligence Unit-India (FIU-IND), under the Ministry of Finance, imposed a penalty of Rs 5.49 crore on Paytm Payments Bank for breaching its obligations under the Prevention of Money Laundering Act (PMLA), on March 1.
FIU-IND launched a review of Paytm Payments Bank after receiving specific information from law enforcement agencies regarding certain entities and their network of businesses involved in various illegal activities, such as organizing and facilitating online gambling.
The Ministry of Finance also stated that the funds generated from these illicit operations, known as proceeds of crime, were funneled through bank accounts held by these entities at Paytm Payments Bank.
Paytm Payments Bank spokesperson said, “The penalty pertains to issues within a business segment that was discontinued two years ago. Following that period, we have enhanced our monitoring systems and reporting mechanisms to the Financial Intelligence Unit (FIU).”