India's Paytm Payments Bank fined over US$662,000 for alleged money laundering
India’s Financial Intelligence Unit (FIU) on Friday (Mar 1) imposed a penalty of US$662,565 on Paytm’s banking arm, Paytm Payments Bank, for alleged money laundering, the country’s finance ministry said in a statement.
The FIU initiated a review of Paytm Payments Bank on the receipt of specific information from law enforcement agencies in respect of a few entities engaged in illegal acts, including organising and facilitating online gambling, the statement said.
“The money generated from these illegal operations proceeds of crime were routed and channelled through bank accounts maintained by these entities with the Paytm Payments Bank,” the ministry said.
Based on the voluminous material available on record, it found that the charges against Paytm were substantiated, the ministry added.
Earlier, the Reserve Bank of India (RBI) asked Paytm Payments Bank to wind down operations by March 15 due to persistent compliance issues and supervisory concerns, triggering a meltdown in Paytm’s stock.
It was not immediately clear if the finance ministry’s actions were linked to the latest move by the RBI. REUTERS
SEE ALSO
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Banking & Finance
Goldman Sachs hires from rivals to expand in mid-market deals
Japan’s big banks forecast record profits, signal new optimism as domestic rates normalise
New Thai Finance Minister to meet central bank chief on Thursday
ABN Amro rides high rates with first-quarter net profit beat
China’s central bank leaves key policy rate unchanged
NYCB to sell nearly US$5 billion of mortgage warehouse loans to JPMorgan