Regulatory attention has intensified around Fino Payments Bank as certain transactions linked to online gaming platforms may be referred to the Enforcement Directorate (ED) for further investigation.
The development follows findings by the Directorate General of GST Intelligence (DGGI), which is examining suspected irregularities in gaming-related transactions. Authorities have identified possible instances of money laundering, with funds allegedly routed through multiple layers to conceal their source.
Based on these findings, the DGGI is expected to recommend an ED probe under anti-money laundering laws. This could lead to a deeper investigation into fund flows and the role of intermediaries involved in such transactions.
The issue is part of a wider probe into alleged GST evasion and financial misconduct in the online gaming ecosystem. Initial assessments indicate that high transaction volumes may have moved through various entities, raising concerns around compliance and transparency.
Fino Payments Bank has denied any direct involvement. The company stated that reports of an ED probe are “non-factual and speculative” and clarified that it is not under investigation by any authority apart from the DGGI.
The bank further said that the probe relates to certain programme managers and merchants working across multiple banks, and not specifically to its own operations or compliance systems.
The reports have impacted investor sentiment, with the bank’s shares declining sharply following news of a possible probe, reflecting concerns over regulatory risks.
The situation highlights increasing scrutiny by authorities on financial transactions linked to online gaming platforms, as efforts intensify to curb tax evasion and potential money laundering in the sector.
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