Pakistan’s central bank orders fintech tag to return customers – Meczyki.Net

The South Asian country’s central bank State Bank of Pakistan has ordered the fintech tag to “immediately” return all funds to customers, citing violations of regulatory requirements and “other concerns” that have existential questions over the startup’s future. .

The regulatory action comes after a month-long investigation into Tag, which provides banking and financial services to users in Pakistan. According to an investor letter obtained by Meczyki.Net, the startup has been accused of documenting the central bank. Central bank outline not given (PDF) The regulatory rules that Tag violated, but set an August 19 deadline for refunds.

TAG co-founder Ehsaan Khan accused the startup’s other co-founder Talal Gondal of forging documents to the central bank, the bank suspended the startup on discovery of the fraud act, he wrote in a letter to investors in June .

“I came to know about the dishonest and unprofessional conduct of Talal Ahmed Gondal while running the TAG from 31st March 2022 (and there were doubts and concerns about his conduct long ago, and I have contacted TAG Pakistan’s advisor / had resigned as COO, 2022 when I came to know about Talal’s case.),” Khan wrote in the letter dated June 16, which was accessed by Meczyki.Net.

“Currently, I am facing illegal actions by other founders, Talal Ahmed Gondal and Alexander Lukianchuk, by which they have attempted to oust me as a founder and stockholder in TAG Fintech on a completely fabricated basis. It appears that this action has been taken by both of them together only to remove the blame and liability towards me, which is an unfortunate turn of events as I have consistently acted as a sensible, prudent and cautious founder since inception Is. surname. It is therefore imperative that our investors, who have invested valuable sums of money in TAG for the purpose of a genuine venture and are making a return on their investment, are exposed to the perilous situation presently.”

TAG is one of the fastest growing startups in Pakistan. It was valued at $100 million in its seed financing round in September last year. The startup counts Liberty City Ventures, Canaan Partners, Editions and Mantis among its backers.

Gondal did not immediately respond to a request for comment.

Further reading: local journalist Taimur Hasan has been Reporting tag issues for weeks,