In a stock exchange filing late Sunday, the company, which owns 49% stake in Paytm Payments Bank, said, “(We) Categorically deny any investigation by the Enforcement Directorate on OCL, our associates and/or its Founder & CEO for anti-money laundering activities. Neither the Company nor its founder and CEO are being investigated by the Enforcement Directorate regarding inter alia money laundering.”
In the past, certain merchants or users on Paytm platforms have been subject to enquiries and on those occasions, the company said it had cooperated with the authorities.
“We would like to set the record straight and deny any involvement in anti-money laundering activities. We have and continue to abide by Indian laws and take regulatory orders with utmost seriousness,” the company added. It further said that the recent direction from the Reserve Bank of India is a part of the “ongoing supervisory engagement and compliance process”.
The regulatory filing comes on the back of multiple media reports which said that Paytm was under the scrutiny of investigating agencies for certain violations related to KYC of customers and Prevention of Money Laundering Act.
One 97 Communications defines Paytm Payments Bank as an associate company, where it holds 49% stake while the rest is held by its founder Vijay Shekhar Sharma. After the RBI told Paytm Payments Bank to stop offering basic banking services from March 1, Paytm said it will move its banking settlement services to other third party lenders.