India’s Enforcement Directorate (ED) recently conducted search operations at 6 locations in Bengaluru, as part of its ongoing investigation into ML/TF through Chinese loan apps. The authority began its investigation after 18 reports were filed in Bengaluru against several entities allegedly involved in the extortion and harassment of those who had availed of small loans through mobile apps run by these entities.
The ED found that some Chinese nationals were controlling and operating these entities by forging documents of Indian citizens and making these citizens the entities’ dummy directors. These entities were conducting illegal business through various merchant accounts in payment gateways and banks. The involved entities had also submitted fake business addresses to the government.
The ED’s search locations included the premises of Razorpay Private Limited, Cashfree Payments, Paytm Payment Services Limited, and entities controlled/operated by Chinese nationals. Thus far, the ED has seized over ₹170 million ($2.13m) in merchant IDs and bank accounts of the entities controlled by Chinese nationals.
Source: Enforcement Directorate, India