Fiu issues notifications to 25 foreign crypto firms about PMLA non-compliance

The Financial Intelligence Unit of India (FIU-Ind) issued notices to 25 virtual digital asset service providers (VDA) for alleged non-compliance with India’s Money Laundry Act, the Ministry of Finance said in a statement on Wednesday. The notices were issued under section 13 of the Money Laundry Prevention Act (PMLA), empowering the authorities to initiate inquiries, seek audits of records, verify client identities and claim reports on suspicious transactions. Entities that are in conflict are fines of up to £ 1 lakh per offense. Illegal activities noticed the ministry that the Director of FIU Ind also issued notices under the Information Technology Act, 2000, was looking for the disposal of apps and URLs that work illegally without compliance with PMLA in India. FIU India, erected in 2004, is the central agency responsible for processing, analyzing and distributing information related to suspicious financial transactions. So far, 50 VDA service providers have registered with FIU end. However, the agency flags still foreign entities provided to Indian users without registration, which keeps them outside the anti-money laundering and counter-financing of terrorism (AML-CFT) framework. VDA service providers working in India (either abroad or on the country) and are engaged in activities such as exchange between virtual digital assets and Fiat currencies, transfer of virtual digital assets, safe conservation or administration of virtual digital assets or instruments that control virtual digital assets, etc. High-risk warning These obligations are based on activity and are not dependent on the physical presence of the entity in India. The regulation set out reporting, record keeping and other obligations on the VDA service providers, which also includes registration with the FIU IND, the ministry said. “It should be mentioned that the crypto products and non-fungabeen signs (NFTs) are unregulated and can be very risky. There may be no regulatory appeal to any loss of such transactions,” he added.