Penalty On Paytm Payments Bank Ltd by the Financial Intelligence Unit-India (FIU-IND)

Context: 

The Financial Intelligence Unit-India (FIU-IND) imposed a penalty on Paytm Payments Bank Ltd concerning the violations of its obligations under the PMLA.

Financial Intelligence Unit imposes Rs 5.49 Crore Fine on Paytm Payments Bank

Issued by: The order was issued  by the Director FIU-IND under Section 13(2)(d) of the Prevention of Money Laundering Act (PMLA), 2002 read with the Prevention of Money Laundering (Maintenance of Records) Rules, 2005

• Charges: The review was initiated because of allegations of money Laundering by entities engaged in illegal activities like organizing and facilitating online gambling etc through bank accounts maintained with the Paytm Payments Bank Ltd.

The Financial Intelligence Unit-India (FIU-IND)

• Established: It was set up by the Government of India in 2004 
• Objective: It acts as the central national agency responsible for receiving, processing, analyzing and disseminating information relating to suspect financial transactions.
• Nodal Ministry: Ministry of Finance
• Line of Command: FIU-IND is an independent body and reports directly to the Economic Intelligence Council (EIC) headed by the Finance Minister.
• Personnel: It has a sanctioned strength of 75 personnel, FIU is a multi-disciplinary body with its staff inducted from various agencies as under, 
  • Central Board of Direct Taxes (CBDT), Central Board of Excise and Customs (CBEC), Reserve Bank of India (RBI), Securities Exchange Board of India (SEBI), Department of Legal Affairs and Intelligence agencies.

• Function of Financial Intelligence Unit-India (FIU-IND)

• • It is responsible for coordinating and strengthening efforts of national and international intelligence, investigation and enforcement agencies in pursuing global efforts against money laundering and financing of terrorism.

News Source: PIB

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