Following Paytm, many more payments banks may face regulatory action as the Financial Intelligence Unit (FIU) has detected about 50,000 accounts without know-your-customer (KYC) verification and potentially engaged in suspicious transactions and money laundering activities, reported The Economic Times.
As per The Economic Times, details of about 30,000 accounts are shared with the Reserve Bank of India which is looking into these and has sought further information.
Lapses like nonreporting of suspicious transactions, not maintaining details of beneficial owners and registration of multiple users using a single income tax permanent account number (PAN) have put these banks under scanner.
“There were 175,000 accounts which were non-compliant, out of which 50,000 were engaged in activities which were suspicious in nature and used for money laundering,” a senior government official told The Economic Times
Also Read: ED starts a preliminary inquiry into Paytm Payments Bank: Reports
The FIU is expected to send a detailed report on deficiencies affecting the payments banks before March 31. As per Economic Times, the FIU had sent a detailed report on Paytm Payments Bank to RBI four months back.
An FIU is an investigation arm of the finance ministry empowered under the Prevention of Money Laundering Act (PMLA). All reporting entities including payment gateways, are supposed to report suspicious transactions to it.
The RBI, earlier this month, ordered Paytm Payments Bank Ltd - a restricted bank that can take deposits but cannot lend - to not take any further deposits or conduct credit transactions or carry out top-ups on any customers accounts, prepaid instruments, wallets, and cards for paying road tolls after February 29.