FIU-IND Calls on all VASPs serving Indian Users to ensure PMLA Compliance

Chennai, May 13, 2024: The Bharat Web3 Association (BWA), India’s leading industry body association for Web3 players, conducted a first of its kind capacity building and training workshop for VDASPs that are Reporting Entities (REs) under the PMLA. The interactive workshop was organized to facilitate knowledge dissemination and impart essential training on the compliance requirements and obligations for REs, as well as to gather feedback on the challenges encountered by VDASPs in adhering to PMLA regulations.

Addressing the audience, Shri Vivek Aggarwal, Director, FIU-IND and Additional Secretary Department of Revenue Government of India, emphasized the importance of compliance with the Anti Money Laundering / Countering the Financing of Terrorism (AML/CFT) framework under the PMLA for VDA SPs serving Indian users, regardless of their domicile. He highlighted that obligations are activity-based rather than dependent on physical presence in India, underscoring the objective and intent to track and trace fraudulent activities effectively.

The workshop was attended by FIU-IND officials, BWA representatives and 60 representatives from across 35 REs. These included founders/senior leaders from CoinDCX, CoinSwitch, WazirX, Mudrex, Unocoin, Pi42, Giottus, highlighting the importance that the VDA players accord to PMLA compliance. The workshop also saw participation from Kucoin, the first international RE registered with FIU-IND. This stands as a testament to FIU-IND’s efforts to bring all VDA SPs under its regulatory ambit, establishing a robust AML/CFT compliance framework for India.

Smt. Ashima Batra, Additional Director FIU-IND, conducted the session titled “Obligations of Reporting Entities: Dos and Don’ts,” aimed at clarifying compliance measures for VDA SPs. Mr. Rohan Bhandari, Head of Compliance from CoinDCX and Mr. Muthuswamy Iyer, Senior Director, WazirX conducted the session on PMLA Compliance for VASPs. Mr. Abhishek Singh, Designated Director, BitKuber Investments covered Risk-based Assessment for VDA SPs. Other sessions were also conducted by compliance solution providers.

The workshop also marked the launch of BWA’s comprehensive document charting the journey of VDA SPs in getting registered as Reporting Entities, which underscores the collaborative efforts between FIU-IND and the VDA sector in establishing a robust AML/CFT compliance framework for the VDA sector in India. The document also lists compliance requirements, challenges, and a forward-looking approach to enhancing the compliance framework for India.

Mr. Dilip Chenoy, Chairperson of Bharat Web3 Association, stated, “BWA strives to serve as a collaborative platform for industry stakeholders, policymakers, and regulators to ensure a compliant ecosystem for VDASPs. Through our member firms, we aim to lead the way in AML/CFT compliance and share best practices within the sector. We extend our heartfelt gratitude to FIU-IND for their guidance and support, and for these collaboration opportunities, and are fully committed to working together to set standards for compliance practices, thereby creating a safer environment for the Web3 and VDA sector in India.”