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Committee set up to examine if payment gateway can be reporting entity under PMLA: Centre to HC

2/26/2021
New Delhi, Feb 26 (PTI) The Centre told the Delhi High Court on Friday that it has set up a committee, as directed by it, on whether a company like PayPal can be considered a payment system operator as well as a reporting entity under the Prevention of Money Laundering Act (PMLA).

The submission was made before Justice Prathiba M Singh by Additional Solicitor General (ASG) Chetan Sharma who said the committee held a meeting on February 23 and another is scheduled on March 4 after which it would submit its final report.

The court directed that the report be placed on record before the next date of hearing on May 20.

It was hearing American online payment gateway PayPal''s plea challenging a Rs 96 lakh penalty imposed on it for alleged violation of anti-money laundering law.

Justice Singh had on January 12 stayed the December 17, 2020 order of the Financial Intelligence Unit (FIU) India imposing the penalty on PayPal, subject to the payment gateway maintaining records of all its transactions in a secure server and depositing within two weeks in the high court a bank guarantee of Rs 96 lakh.

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