Financial Intelligence Unit on Friday imposed ₹5.49 crore penalty on Paytm Payments Bank for money laundering, PTI quoted the ministry of finance as saying. The action is a fresh blow to the lender after the Reserve Bank of India on January 31 had barred it from accepting new deposits from February 29, later extending it to March 15.
The finance ministry alleged that proceeds of crime were routed through bank accounts maintained with Paytm Payments Bank by entities engaged in illegal activities.
According to the ministry, the financial intelligence unit had initiated a review of the Paytm lender following information from law enforcement agencies with respect to few entities and their network of businesses engaged in a number of illegal acts that include organising and facilitating online gambling.
“The Financial Intelligence Unit-India (FIU-IND),… has imposed a monetary penalty of ₹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 in a statement. The FIU had passed its order imposing the penalty on February 15.