https://www.taxtmi.com/caselaws?id=440968 A payment gateway service provider facilitating export-related transactions was held to fall within the PMLA's expansive definition of "payment system," because the statute covers entities that enable payment flows and generate material transaction data, even if they do not directly handle or settle funds. The Court therefore treated the provider as a reporting entity bound by PMLA reporting and due diligence obligations. However, the monetary penalty for non-registration and non-compliance was quashed because penalty under Section 13 is quasi-criminal, the default arose from a bona fide interpretive dispute, and the impugned order imposed the maximum penalty monthly without a clear statutory basis or adequate reasons. en-us Mon, 24 Jul 2023 00:00:00 +0530 Mon, 31 Jul 2023 06:50:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=440968 A payment gateway service provider facilitating export-related transactions was held to fall within the PMLA's expansive definition of "payment system," because the statute covers entities that enable payment flows and generate material transaction data, even if they do not directly handle or settle funds. The Court therefore treated the provider as a reporting entity bound by PMLA reporting and due diligence obligations. However, the monetary penalty for non-registration and non-compliance was quashed because penalty under Section 13 is quasi-criminal, the default arose from a bona fide interpretive dispute, and the impugned order imposed the maximum penalty monthly without a clear statutory basis or adequate reasons. Case-Laws Money Laundering Mon, 24 Jul 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=440968