Delhi HC quashes INR 96 Lakh penalty on PayPal by FIU


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The Delhi High Court has set aside a penalty of INR 96 lakh imposed on online payment major PayPal by the finance ministry’s Financial Intelligence Unit-India (FIU) for allegedly violating India’s anti-money laundering law. However, the court said that PayPal is a ‘payment system operator’ within the framework of Prevention of Money Laundering Act (PMLA). Hence, it is obliged to follow the reporting entity obligations under the PMLA.