Why in news
The Financial Intelligence Unit-India has fined Paytm Payments Bank Ltd. (PPBL) ₹5.49 crore for violations of the Prevention of Money Laundering Act.
This is after finding substantial proof of money generated from illegal activity being routed through accounts held by entities with the bank.
The FIU-IND had initiated a review of PPBL’s operations after receiving “specific information” from law enforcement agencies about a few entities and their network of businesses engaging in a number of illegal acts, including organising and facilitating online gambling.
Financial Intelligence Unit
India's central agency for fighting financial crimes.
Responsible for gathering, analyzing, and sharing information related to suspicious financial activity.
Plays a key role in preventing money laundering, terrorist financing, and other economic offenses.
Key Functions:
Receiving Financial Reports: Collects various financial reports mandated by law, including:
Suspicious Transaction Reports (STRs)
Cash Transaction Reports (CTRs)
Counterfeit Currency Reports (CCRs)
Cross-Border Wire Transfer Reports (CBWTRs)
Non-Profit Organization Transaction Reports (NTRs)
Analyzing Information: Processes and analyzes financial data to uncover patterns and links that may point to illegal activity.
Disseminating Intelligence: Shares analyzed information with law enforcement and intelligence agencies.
International Cooperation: Collaborates with foreign Financial Intelligence Units to combat cross-border financial crimes.
Structure
Established: November 18th, 2004
Reports to: The Economic Intelligence Council (EIC), headed by India's Finance Minister.
Administrative Control: Department of Revenue, Ministry of Finance
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