ED questions Paytm executives, gets documents on latest RBI action

The Enforcement Directorate has questioned senior Paytm executives and taken submission of documents from them following the recent RBI action of barring Paytm Payments Bank Ltd from accepting deposits or topups in any customer account official sources said ThursdayThe central agency according to the sources is conducting preliminary examination of documents before it decides to launch a formal investigation into the RBIflagged alleged irregularities at the fintech company under the Foreign Exchange Management Act FEMASome documents have been recently submitted by Paytm executives following which they were asked certain questions Some more information has been sought the sources saidAs 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 addedAn investigation under the Prevention of Money Laundering Act PMLA involving Paytm is already going on for some time they saidOne97 Communications which provides financial services under the Paytm brand and its banking arm Paytm Payments Bank have been receiving notices and requests for information with respect to customers of the respective entities an exchange filing by the company said on WednesdayPaytm said its associate Paytm Payments Bank Limited does not undertake outward foreign remittancesOne 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 said in a regulatory filingPaytm said the company and its associate have continued to provide information documents and explanations to the authorities as required by themEarlier this month the Enforcement Directorate and the Financial Intelligence Unit asked the RBI to share its report on the recent action taken to bar Paytm Payments Bank Ltd from accepting deposits or topups in customer accounts according to sourcesThe central bank on January 31 directed it to stop accepting deposits or topups in any customer accounts wallets FASTags and other instruments after February 29The ED has been probing Paytm and other online payment wallets as part of its money laundering investigation against Chinesecontrolled mobile phone apps who allegedly laundered funds using merchant IDs created on these fintech platformsThe Financial Intelligence Unit FIU has also sought the report from the RBI to analyse whether Paytm or PPBL followed the required procedures as a reporting entity under section 13 of the PMLAUnder this section of the antimoney laundering law a financial institution bank or intermediary has to furnish details to the FIU about maintaining records of all transactions and documents evidencing identity of its clients and beneficial owners as well as account files and business correspondence relating to its clientsThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever