New Delhi: Paytm Payments Bank Fined Rs 5.49 Crore for Money Laundering Violations

NEW DELHI: The Financial Intelligence Bureau India has slapped a hefty penalty of Rs 5.49 crore on Paytm Payments Bank for indulging in money laundering activities. The finance ministry issued a statement in public that the fine came resulting the bank's non-compliance with anti-money laundering laws. FIU-IND initiated a comprehensive internal investigation of Paytm Payments Bank on specific allegations by law enforcement agencies regarding various transactions related to illegal activities that includes online gambling facilities. It was also found that the funds derived from these illegal activities were funneled through the bank accounts held by these companies in Paytm Payments Bank Limited.

The ministry confirmed that the FIU-IND investigation revealed gross violations of obligations under the Prevention of Money Laundering Act (PMLA). As a result, FIU-IND imposed a monetary penalty of Rs 5.49 crore on Paytm Payments Bank Ltd . The order imposing the sanction was approved on March 1, 2024 by the FIU.

The penalty subsequently followed a directive which is issued by the Reserve Bank of India (RBI) on January 31, 2024 that prohibits Paytm Payments Bank from accepting additional deposits or credits on customer accounts from January 29, 2024. It was further extended with the revised guidelines to March 15 , 2024. This financial penalty cited the lawmakers’ commitment to fighting money laundering.

It further ensures a degree of compliance with strict anti-money laundering laws. Thus it serves as a warning to financial institutions to maintain the volumnous standards of honesty and diligence to prevent their platforms from being misused against illegal activities of all kinds. Paytm Payments Bank is planning to make any public statement on the penalty imposed by FIU-IND. Thus this development is likely to lead to a greater scrutiny and regulatory scrutiny of the use of digital payment systems to protect against financial crime and illicit transactions in near future.

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