The State Bank of Pakistan, the South Asian nation’s central bank, has ordered fintech Tag to “immediately” refund all funds to customers citing violation of regulatory requirements and “other concerns,” posing existential questions on the startup’s future.
The regulatory action follows a months-long probe into Tag, which offers banking and financial services to users in Pakistan. The startup has been accused of forging documents to the central bank, according to an investor letter obtained by TechCrunch. The central bank did not outline (PDF) which regulatory rules Tag had violated, but set a deadline of August 19 for the refund.
Ahsan Khan, co-founder of TAG, accused the startup’s other co-founder Talal Gondal of forging documents to the central bank, upon discovery of the fraudulent act the bank suspended the startup, he wrote in a letter to investors in June.
“I had come to know of Talal Ahmad Gondal’s unscrupulous and unprofessional conduct while running TAG since 31st March 2022 (and had suspicions and concerns about his conduct long before then, and I resigned from Advisor/COO position of TAG Pakistan as of 1 April, 2022 when I came to know about Talal’s case.),” Khan wrote in the letter dated June 16, which was obtained by TechCrunch.
“At present, I am facing illegal actions by the other founders, Talal Ahmad Gondal and Alexander Lukianchuk, by which they have attempted to oust me as a founder and stockholder in TAG Fintech on wholly fabricated grounds. It appears...
Read Full Story: https://techcrunch.com/2022/08/04/pakistan-central-bank-orders-fintech-tag-to-refund-customers/
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