Paytm Bank is fined Rs 5.49 crore by the FIU under the PMLA
Paytm Payments Bank has been fined Rs 5.49 crore by the Financial Intelligence Unit-India (FIU-IND) for breaking money laundering regulations.
In a statement, the ministry of finance stated, “On receipt of specific information from law enforcement agencies regarding a few entities and their network of businesses engaged in a number of illegal acts, including organising and facilitating online gambling, FIU-IND initiated a review of the Paytm Payments Bank Ltd.”
It went on to say that these businesses’ bank accounts with Paytm Payments Bank Ltd. served as a conduit for the money obtained from these illicit transactions, or the profits of crime. Vijay Shekhar Sharma, the founder and CEO of Paytm, recently left his position as the payments bank’s non-executive chairman and board member.
“The penalty pertains to issues within a business segment that was discontinued two years ago,” a Paytm Payments Bank official said. We have improved our reporting procedures to the Financial Intelligence Unit (FIU) and monitoring systems since then.
Paytm and Paytm Payments Bank Limited (PPBL) decided to end a number of inter-company agreements with Paytm and its affiliated companies on Friday. In order to promote PPBL’s governance, which is separate and apart from its shareholders, the company’s shareholders have decided to streamline the Shareholders Agreement (SHA).
