PayPal is a payment system operator under PMLA; should comply with reporting entity obligations: Delhi High Court

However, the Court ruled that the FIU’s order imposing penalty of ₹96 lakh on PayPal was unjustified because the company was proceeding under a bona fide belief that its operations did not fall within the ambit of PMLA.
PayPal and Delhi High Court
PayPal and Delhi High Court

The Delhi High Court Monday held that online payment platform PayPal is a 'payment system operator' within the framework of Prevention of Money Laundering Act (PMLA) and, therefore, obliged to comply with the reporting entity obligations under the PMLA [PayPal Payments Private Limited v Financial Intelligency Unit India & Anr].

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