New Delhi- Financial Intelligence Unit-India (FIU-IND) has imposed a Rs 5.49 crore penalty on Paytm Payments Bank for violating anti-money laundering rules, the Finance Ministry said on Friday.
FIU-IND initiated a review of Paytm Payments Bank 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.
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 ministry said.
“The Financial Intelligence Unit-India (FIU-IND),… has imposed a monetary penalty of Rs 5.49 crore on 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 RBI’s January 31 directive barring 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.