NEW DELHI: Financial Intelligence Unit-India has imposed a penalty of Rs 5.49 cr on Paytm Payments Bank for money laundering, the finance ministry said.
The finance ministry said that the proceeds of crime were routed through bank accounts maintained with Paytm Payments Bank by entities engaged in illegal activities.
“The Financial Intelligence Unit-India (FIU-IND), in furtherance of the powers conferred upon the Director FIU-IND under Section 13(2)(d) of the Prevention of Money Laundering Act (PMLA), 2002, has imposed a monetary penalty of Rs. 5,49,00,000 (rupees five crore forty nine lakh) on Paytm Payments Bank Ltd with reference to the violations of its obligations under the PMLA read with the Prevention of Money Laundering (Maintenance of Records) Rules, 2005 (PML Rules) issued thereunder and applicable guidelines and advisories issued by the Director FIU-IND,” the Centre said in a statement.
“FIU-IND initiated a review of the 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, including organising and facilitating online gambling,” it added.
This action by the FIU comes after the Reserve Bank of India (RBI) directed Paytm Payments Bank to suspend accepting fresh deposits or credits in customer accounts from February 29, later extended to March 15.