FIU has imposed a fine of Rs 96 lakh on American online payment gateway company PayPal. This action was taken in violation of the Anti Money Laundering Act.
The company is also accused of hiding suspicious financial transactions and promoting the 'disintegration' of India's financial system. PayPal started its operations in India in November 2017. The US company says it is fully committed to following the procedures and is carefully reviewing the case.
The company is accused of defying and frustrating public interest principles and violating the provisions of the Prevention of Money Laundering Act. The Financial Intelligence Unit (FIU) described PayPal's violations as intentional. The FIU issued a 27-page order on 17 December. In this, he blamed the American company for three points.
In the order, the company has been asked to pay the fine within 45 days. Also, it has been asked to register as a reporting entry in FIU.
Apart from this, the company has also been asked to appoint the Principal Officer and Director for Communication within 15 days of receiving the copy of the order. Permission has also been granted to challenge the FIU's order in the Appellate Tribunal of the PMLA within one and a half months.