StartupTalky

Tag: Anti Money Laundering

  • The Government Warns About Four Illicit Payment Channels that Help Launder Money

    The Ministry of Home Affairs (MHA)’s Indian Cybercrime Coordination Centre (I4C) has taken a strong stance against cybercrime by warning about illicit payment gateways set up by transnational organised cybercriminals. Money laundering as a service is allegedly being facilitated by these gateways, which were made utilising mule bank accounts.

    These actions indicate a number of payment gateways, including RPPay, PoccoPay, RTX Pay, and PeacePay. According to reports, these platforms are run by foreigners and are a component of a bigger network that provides services for money laundering.

    Frequent Raids Are Being Conducted Nationwide

    The Ministry of Home Affairs announced in a news release that a network of illicit digital payment gateways connected to numerous cybercrimes was discovered during nationwide operations by the Gujarat and Andhra Pradesh Police.

    The Ministry claims that these operations, which were mostly discovered via social media sites like Facebook and Telegram, took use of rented bank accounts from people and shell corporations. Social media platforms are used to research current and savings accounts. According to government officials, these accounts are owned by shell corporations, businesses, or private citizens.

    What I4C’s Investigations Further Revealed?

    These mule accounts are frequently remotely managed from overseas, according to the I4C’s investigation. Once set up, these gateways made it possible for criminal syndicates to handle deposits for illegal operations such as offshore betting, phoney stock trading platforms, and fraudulent investment schemes.

    Because dealing in illegal funds might result in severe legal consequences, including arrest, the I4C advised citizens against selling or renting their bank accounts or any company registration documents. According to I4C, banks may utilise checks to find instances of bank account misuse that result in the establishment of illicit payment gateways.

    Who is Indian Cybercrime Coordination Centre?

    Cyberspace transcends national borders and manages Coordination between many stakeholders in various jurisdictions at all levels is necessary to combat cybercrime. One of the types of transnational crime that is expanding the fastest is cybercrime. There has been an exponential rise in cybercrime worldwide due to the surge in internet usage and rapidly evolving technologies.

    In order to put a firm scanner on the cyber activities, the Ministry of Home Affairs, Government of India, launched the Indian Cybercrime Coordination Centre (I4C). This move was initiated to address cybercrime throughout the nation in a comprehensive and coordinated way.

    I4C aims to address every aspect of cybercrime for the benefit of the public, including enhancing cooperation between different law enforcement organisations and interested parties, promoting improvements in India’s overall capacity to combat cybercrime, and raising citizen satisfaction levels.

    On October 5, 2018, the Indian Cybercrime Coordination Centre plan was authorised. Since its inception, it has sought to improve the country’s overall capacity to combat cybercrimes and foster efficient cooperation between law enforcement agencies. The Home Minister dedicated the I4C to the nation on January 10, 2020.

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  • Unpaid Stamp Duty Cost Paytm’s Parent Firm INR 47.12 Lakh

    One97 Communications, the parent company of Paytm, has been ordered by the Office of Collector of Stamps in New Delhi to pay a penalty of INR 47.12 lakh for failing to pay stamp duty on the allotment of equity shares in recent years.

    As stated in a filing with the exchange, the penalty is a consequence of the company’s failure to pay stamp duty in the amount of INR 1,43,16,535 as a result of the allocation of 10,26,386 equity shares, each of which is worth INR 10.

    Despite the fact that there were delays of a few days in the submission of some applications, the company submitted applications for the payment of stamp duty at the appropriate time with the Office of Collector of Stamps in New Delhi. In the order that they were submitted, the applications in question have been processed by the Office of the Collector of Stamps.

    According to the filing, the company stated, “Firm has taken all of the necessary steps to be more diligent in doing our best to avoid similar instances in the future.”

    What Is Stamp Duty?

    The government levies a charge known as stamp duty on legal papers, particularly those that pertain to the transfer of property, the issue of shares, and other types of financial transactions.

    It is necessary for the legal validity and enforcement of these documents, which are payable when particular transactions take place, such as the transfer of property ownership or the formation of legal agreements.

    Paytm Sailing through Troubled Waters

    The Financial Intelligence Unit-India (FIU-IND) levied a penalty of INR 5.49 crore against Paytm Payments Bank Ltd. for violating the Prevention of Money Laundering Act earlier in the month of March.

    The bank was allegedly involved in supporting illicit activities, such as online gambling, through its accounts, which led to the imposition of the penalty. According to the findings of the Financial Intelligence Unit of India (FIU-IND), the bank has violated the rules regarding anti-money laundering, combatting financing of terrorism, and KYC (Know Your Client).

    In its response, Paytm Payments Bank stated that the problems were related to a business sector that had been discontinued and that it has also enhanced its monitoring and reporting mechanisms since previous statements.

    This is a warning lesson for all businesses, as Paytm went from being a pioneering firm to having to face regulatory roadblocks. Because of this, the complex equilibrium that exists between rapid growth and tight compliance is brought to light. All companies would be well to take note of Paytm’s experiences and reevaluate their compliance practices in light of these difficulties.

    Innovation is the engine that drives expansion, but compliance with laws and regulations is what assures long-term viability. By ensuring that their pursuit of innovation does not eclipse the need for compliance, businesses have a responsibility to work towards striking a balance between these factors.

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