Key Points
India is at the Financial Action Task Force pushing for inclusion of online gaming companies under the ambit of anti-money laundering or countering the financing of terrorism (AML/CFT) framework...
The government has already initiated internal discussions and is examining various options that would require the gaming companies to adopt strict Know Your Customer norms and stringent reporting of suspicious transactions to the agencies...
New Delhi will once again place its case in the next meeting of the global anti-money laundering body in Paris, people familiar with the matter said.. "India will again present its case on how the online gaming platforms were being misused and why these should be under the ambit of the global standard," a senior official told ET. citing concerns over illicit funds laundered through platforms like Mahadev Apps...
"We are concerned about the gaming sector as it has cross border implications as well, because money transfer can happen between jurisdictions and there can be gaming apps which are run from abroad which have Indian clientele," another senior official told ET...
While there were initial apprehensions that online gaming may be required to report under PMLA, as some gaming companies were dealing with cryptos, however the compliance burden was restricted to crypto exchanges and gaming companies are not yet a reporting entity under PMLA..
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