Key Points
NEW DELHI: More payment 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...
About 30,000 of these are with payments banks other than Paytm Payments Bank and details have already been given to the Reserve Bank of India (RBI), which is looking into these and has sought further information, said people with knowledge of the matter..
The lapses by such banks include nonreporting of suspicious transactions, not maintaining details of beneficial owners and registration of multiple users using a single income tax permanent account number (PAN)...
All reporting entities, including payment gateways, are supposed to report suspicious transactions to the FIU, an investigation arm of the finance ministry empowered under the Prevention of Money Laundering Act (PMLA)..
Section 13 of the PMLA says that afinancial institution, bank, or intermediary has to furnish details to the FIU about maintaining records of all transactions and documents on the identity of clients and beneficial owners as well as account files and business correspondence relating to clients...
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