FIU IND Issues Show Cause Notices to Nine Offshore Virtual Digital Assets Service Providers
In an effort to enforce compliance measures against offshore entities, the Financial Intelligence Unit India (FIU IND) has taken action by issuing show cause notices to nine offshore Virtual Digital Assets Service Providers (VDA SPs) under Section 13 of the Prevention of Money Laundering Act (PMLA).
The Ministry of Finance released an official statement mentioning, “Virtual Digital Assets Service Providers (VDA SPs) were incorporated into the Anti-Money Laundering and Counter-Financing of Terrorism (AML-CFT) framework under the provisions of the Prevention of Money Laundering Act (PMLA) in March 2023.”
The statement continued, “As part of the compliance efforts against these offshore entities, the Financial Intelligence Unit India (FIU IND) has issued compliance Show Cause Notices to the following nine offshore Virtual Digital Assets Service Providers (VDA SPs) under Section 13 of the Prevention of Money Laundering Act, 2002 (PMLA).
In an effort to enforce compliance measures against offshore entities, the Financial Intelligence Unit India (FIU IND) has taken action by issuing show cause notices to nine offshore Virtual Digital Assets Service Providers (VDA SPs) under Section 13 of the Prevention of Money Laundering Act (PMLA).
The Ministry of Finance released an official statement mentioning, “Virtual Digital Assets Service Providers (VDA SPs) were incorporated into the Anti-Money Laundering and Counter-Financing of Terrorism (AML-CFT) framework under the provisions of the Prevention of Money Laundering Act (PMLA) in March 2023.”
The statement continued, “As part of the compliance efforts against these offshore entities, the Financial Intelligence Unit India (FIU IND) has issued compliance Show Cause Notices to the following nine offshore Virtual Digital Assets Service Providers (VDA SPs) under Section 13 of the Prevention of Money Laundering Act, 2002 (PMLA).
The obligation is activity-based and is not contingent on physical presence in India.
“The regulation mandates reporting, record-keeping, and various responsibilities on the Virtual Digital Assets Service Providers (VDA SPs) as stipulated under the PML Act, necessitating their registration with the FIU IND,” as per the release.
As of now, 31 VDA SPs have completed registration with the FIU IND. Yet, despite serving a significant segment of Indian users, numerous offshore entities failed to comply with the Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) frameworks by not registering as required.