The FIU issued its order imposing the penalty on February 15.
New Delhi: The Finance Ministry said on Friday that the Financial Intelligence Unit-India (FIU-IND) has slapped a Rs 5.49 crore penalty on Paytm Payments Bank for breaching anti-money laundering rules, news agency PTI reported.
The FIU-IND started a review of Paytm Payments Bank after getting specific information from law enforcement agencies about some entities and their network of businesses involved in various illegal activities, such as online gambling.
The ministry said that the money earned from these illegal operations, i.e. proceeds of crime, were transferred and deposited into bank accounts held by these entities with Paytm Payments Bank Ltd.
Read More: Paytm Payments Bank slapped with penalty over money laundering
“The Financial Intelligence Unit-India (FIU-IND),… has imposed a monetary penalty of Rs 5.49 crore on Paytm Payments Bank Ltd for the violations of its obligations under the PMLA (Prevention of Money Laundering Act),” the ministry said.
The FIU issued its order imposing the penalty on February 15.
Read More: India’s Paytm Discontinues Inter-Company Agreements With Its Payments Bank
The FIU action came after RBI’s January 31 directive that barred Paytm Payments Bank from taking new deposits or credits in the accounts of its customers from February 29. The deadline was later extended to March 15.
