Paytm Payments Bank Slapped with ₹5.49 Crore Fine for Money Laundering

In a recent development, Paytm Payments Bank finds itself in hot water as the Finance Ministry imposes a hefty fine of ₹5.49 crore for violating the obligations under the Prevention of Money Laundering Act (PMLA). The fine follows a thorough review of Paytm Payments Bank's operations based on specific information provided by law enforcement agencies. The Financial Intelligence Unit-India (FIU-IND) took action after receiving crucial information from law enforcement agencies regarding the involvement of Paytm Payments Bank in routing and channelizing the proceeds of crime from businesses engaged in various illegal activities, including organizing and facilitating online gambling. According to a release from the Ministry of Finance, FIU-IND initiated a review of Paytm Payments Bank Ltd upon receiving specific information about entities and their network of businesses involved in illegal acts. The investigation revealed that proceeds of crime generated from these illegal operations were routed through bank accounts maintained by these entities with Paytm Payments Bank Ltd. The government thoroughly examined oral and written submissions from representatives of Paytm Payments Bank and concluded that the charges against the company were substantiated. Consequently, in exercise of powers under Section 13 of the PMLA, the Finance Ministry deemed it appropriate to impose a penalty of ₹5.49 crore on the bank. This development underscores the importance of strict adherence to regulatory obligations in the banking sector and serves as a reminder of the consequences for non-compliance with anti-money laundering laws. #nationalgossip