Paytm Payment Bank failed to clear suspects amid facing penalty from FIU

According to the Financial Intelligence Unit order, Paytm Payments Bank slapped with a fine of Rs 5.49 crore for money laundering, had failed to clear internal mechanisms to detect and report suspicious transactions as stipulated under the anti-money laundering law.

Paytm Payment Bank failed to clear suspects amid facing penalty from FIU

According to the official reports, the FIU had said that the charges against the Paytm lender under the Prevention of Money Laundering Act (PMLA) were substantiated after more than four years of investigation and a show cause notice was issued against it on February 14, 2022.

The proceeds of these fraudulent activities were subsequently remitted abroad and several of the involved entities made use of payment intermediaries to implement their fraudulent designs within the country," the order said.

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The Financial Intelligence Unit charged Paytm Payments Bank with failing to "put in place an internal mechanism to detect and report suspicious transactions in the manner prescribed under the PMLA and PML Rules, including regarding its payout service and accounts of the entities in question".

 

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In addition to this, the lender has also been charged by the FIU for "failing" to exercise ongoing due diligence concerning its payout service and accounts of entities in question relating to the same service.

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