BENGALURU: The Financial Intelligence Unit-India (FIU-IND) has imposed Rs 5.49 crore penalty on Paytm Payments Bank for violating money laundering norms.
The finance ministry in a statement said, “FIU-IND initiated a review of the Paytm Payments Bank Ltd on receipt of specific information from law enforcement agencies in respect of a few entities and their network of businesses engaged in a number of illegal acts, including organising and facilitating online gambling.”
Further, the money generated from these illegal operations, i.e. proceeds of crime were routed and channelled through bank accounts maintained by these entities with the Paytm Payments Bank Ltd, it added. Recently, Paytm founder and CEO Vijay Shekhar Sharma resigned as the non-executive chairman and board member of the payments bank.
Paytm Payments Bank spokesperson said, “The penalty pertains to issues within a business segment that was discontinued two years ago. Following that period, we have enhanced our monitoring systems and reporting mechanisms to the Financial Intelligence Unit (FIU).”
On Friday, Paytm and Paytm Payments Bank Limited (PPBL) have mutually agreed to discontinue various inter-company agreements with Paytm and its group entities. The shareholders of PPBL have agreed to simplify the Shareholders Agreement (SHA) to support PPBL’s governance, independent of its shareholders.