Get the inside scoop on the latest controversy surrounding Paytm Payments Bank! Despite regulatory crackdowns, an exclusive investigation reveals surprising findings.
Enforcement Directorate Investigation
According to a report, the central agency scrutinized over 50 lakh accounts and wallets as part of its investigation. The Enforcement Directorate (ED) has reportedly found no breaches under the Foreign Exchange Management Act (FEMA) in the case of Paytm Payments Bank Limited (PPBL), as per sources familiar with the matter.
While the Reserve Bank of India (RBI) took action against PPBL by prohibiting it from onboarding new customers after February 29 due to “persistent non-compliance,” the ED did not find any FEMA violation.
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No PMLA Offence Detected
Sources state that there are no scheduled offenses under the Prevention of Money Laundering Act (PMLA) concerning PPBL. Hence, the ED couldn’t initiate a money laundering investigation.
The ED focused on examining financial transactions to determine compliance with FEMA provisions, as there were no apparent proceeds of crime due to the absence of detected criminal activity and all the findings, along with certain observations regarding payment banks, third-party application providers, and payment aggregators, have been forwarded to the RBI.
Issues Highlighted by ED
The issues flagged by the agency include laxity in adhering to Know Your Customer (KYC) norms, identifying ultimate beneficial ownership, politically exposed persons, KYC adherence related to setting up virtual accounts, and monitoring and reporting suspect transactions to authorities like the Financial Intelligence Unit (FIU).
Bhaarat Bulletin’s Shikha Rai, Bimal Dev, and The Enforcement Directorate of India have contributed to the above report
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