Enforcement Directorate orders freeze on accounts of 100 fintech firms

9 Jun 2022 , 12:41 PM

New Delhi-headquartered the Enforcement Directorate, which investigates financial crimes and violations of the provisions of foreign exchange, has told payment gateways and banks to freeze the accounts of around 100 fintech firms.

According to the media reports, ED has frozen 100 fintech firms’ accounts without ascribing any reason, halting operations at these platforms and putting some of them at risk of closure.

Further, the directorate has been cracking down on loan apps in particular for the past two years on charges of violations of Foreign Exchange Management Act and Prevention of Money Laundering Act. There have been complaints that the fintech firms are putting undue pressure on borrowers for repayment, as per the news published on Moneycontrol website.

Recently, in addition to this, under the provisions of the Prevention of Money Laundering Act, last week the ED blocked the bank accounts of the Popular Front of India (PFI) in a money-laundering investigation (PMLA).