Paytm mentioned its affiliate Paytm Payments Bank Limited doesn’t undertake outward overseas remittances.
| Photo Credit: Reuters
“The Enforcement Directorate (ED) has questioned senior Paytm executives and taken submission of documents from them following the recent Reserve Bank of India (RBI) action of barring Paytm Payments Bank Limited from accepting deposits or top-ups in any customer account,” official sources mentioned on February 15.
The Central company, in line with the sources, is conducting preliminary examination of documents earlier than it decides to launch a proper investigation into the RBI-flagged alleged irregularities on the fintech firm below the Foreign Exchange Management Act (FEMA).
“Some documents have been recently submitted by Paytm executives following which they were asked certain questions. Some more information has been sought,” the sources mentioned.
“As of now, no irregularities have been detected and a case under FEMA will only be registered once any contravention under the said law is found,” they added. “An investigation under the Prevention of Money Laundering Act (PMLA) involving Paytm is already going on for some time,” they mentioned.
One97 Communications, which gives monetary providers below the Paytm model, and its banking arm Paytm Payments Bank have been receiving notices and requests for info with respect to clients of the respective entities, an alternate submitting by the corporate mentioned on February 14.
Paytm mentioned its affiliate Paytm Payments Bank Limited doesn’t undertake outward overseas remittances.
“One 97 Communications Limited (OCL), its subsidiaries and its associate, Paytm Payments Bank Limited, have over time been receiving notices and requisition for information, documents and explanations from the authorities, including Enforcement Directorate (ED), with respect to the customers that may have done business with the respective entities, and provided the required information, documents and explanations to the authorities,” Paytm mentioned in a regulatory submitting.
Paytm mentioned the corporate and its affiliate have continued to offer info, documents and explanations to the authorities as required by them.
Earlier this month, the Enforcement Directorate and the Financial Intelligence Unit (FIU) requested the RBI to share its report on the current action taken to bar Paytm Payments Bank Limited from accepting deposits or top-ups in buyer accounts, in line with sources.
The Central financial institution, on January 31, directed it to cease accepting deposits or top-ups in any buyer accounts, wallets, FASTags and different devices after February 29.
The ED has been probing Paytm and different on-line cost wallets as a part of its money-laundering investigation in opposition to Chinese-controlled cell phone apps who allegedly laundered funds utilizing service provider IDs created on these fintech platforms.
The FIU has additionally sought the report from the RBI to analyse whether or not Paytm or PPBL adopted the required procedures as a “reporting entity” below part 13 of the PMLA.
Under this part of the anti-money laundering legislation, a monetary establishment, financial institution or middleman has to furnish particulars to the FIU about sustaining data of all transactions and documents evidencing id of its purchasers and helpful house owners in addition to account information and enterprise correspondence referring to its purchasers.
