Updated Guidelines for Combating Money Laundering and Terrorist Financing
The Financial Intelligence Unit - India (FIU-IND) has introduced updated guidelines aimed at enhancing compliance requirements for cryptocurrency exchanges and raising the entry barriers for new market participants.
Key Updates and Requirements
- The new framework for anti-money laundering (AML) and counter-terrorist financing (CTF) includes mandatory cybersecurity audits for virtual digital asset (VDA) service providers.
- These audits must be conducted by professionals accredited by the Indian Computer Emergency Response Team (CERT-In).
- Registration with FIU-IND is now mandatory for entities offering VDA-related services to enhance regulatory oversight.
- A detailed registration process on the FINGate portal has been introduced, alongside mandatory in-person meetings, potentially slowing new platform registrations.
Legislative Context
In March 2023, FIU-IND released AML and CFT guidelines that brought VDA services under the ambit of the Prevention of Money Laundering Act (PMLA), 2002. This move is seen as a step towards a more structured and mature digital asset market in India.
