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ED Finds No FEMA Violations In Paytm Payments Bank Case: Report

The agency looked into over 50 lakh accounts and wallets but didn't find any breaches of foreign exchange rules.

ED Finds No FEMA Violations In Paytm Payments Bank Case: Report
POSTED ON February 19, 2024 6:37 PM

Enforcement Directorate (ED) has found no violations under the Foreign Exchange Management Act (FEMA) in the case of Paytm Payments Bank Limited (PPBL), newspaper The Hindu has reported quoting its sources.  

"If no crime is established, there are no 'proceeds of crime' generated, thus the PMLA does not apply," a government official informed the newspaper. 

People aware of the matter further added that the PPBL has not been implicated in any scheduled offense under the Prevention of Money Laundering Act (PMLA). 

The agency looked into over 50 lakh accounts and wallets but didn't find any breaches of foreign exchange rules. However, it did find some issues related to Know Your Customer (KYC) compliance and other matters.  

As reported by news agency PTI, the ED had questioned senior Paytm executives and obtained submissions of documents from them following the recent RBI action of barring Paytm Payments Bank Ltd from accepting deposits or top-ups in any customer account.  

Meanwhile, Paytm issued a statement saying that PPBL does not undertake outward foreign remittances. The company mentioned that it has been providing information, documents, and explanations to the authorities as required.

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