Money laundering case: ED is now again back at Paytm office!

The ED has said during the raids that they has seized an amount of Rs 17 crore worth of funds which were kept in “merchant IDs and bank accounts of these Chinese persons-controlled entities”! A spokesperson who opened mouth for Paytm haa said that this action was linked to the same matter where the agency had undertaken searches earlier this month!

ED again raided on Paytm, PayU, others in a relation with the Chinese loan money laundering case!

The Enforcement Directorate again has raided many online payment firms like  Paytm and many other agencies. The raid was in connection with an ongoing money laundering probe, which is linked to alleged financial irregularities. This is being guessed that some instant app-based loan companies which are being “controlled” by Chinese persons are linked to this. They said that, only those companies which are engaged in these loan app transactions and operators in around three states are being searched.

Some months ago, they had raided the premises of Paytm and two more payment solutions providers, named Razorpay and Cashfree in Bengaluru. This was also as part of a money laundering case against some instant app-based loan companies who were being “controlled” by Chinese persons.The biggest and most concerning fact for the regulator was that, the major lapses in PPBL’s Know Your Customer (KYC) processes. But RBI found that no proper checks were done by Paytm to onboard customers, this has led to multiple instances of misuse, including money laundering activities. 

This is not the first time, RBI had flagged these concerns to Paytm  some years before also. But then they had decided to bar the bank from onboarding any new customers in March 2022, as per the reports said. The RBI had also flagged some lapses in the bank’s IT systems. They had asked them to appoint a third-party firm to conduct a comprehensive audit of its IT systems!