NEW DELHI: Paytm Payments Bank failed to put in place an internal mechanism to “detect and report” suspicious transactions as stipulated under the anti-money laundering law and was unsuccessful in conducting due diligence of its payout service, the FIU said in its order that imposed a fine of Rs 5.49 crore on the digital entity.
The federal financial intelligence gathering and dissemination agency said in its March 1 order that these charges against the bank, a registered reporting entity with the FIU under the PMLA, were “substantiated” after more than four years of investigation and a show cause notice that was issued against it on Feb 14, 2022.
The summary FIU order accessed said the proceedings against the beleaguered Paytm entity began in 2020 on a reference made by law enforcement agencies about “extensive illegal activity conducted by multiple businesses under the syndicate of individuals connected to a foreign state...’’