Indian government plans to strengthen AML reporting rules for gambling firms
The Indian government is planning to make online gambling companies a target of the 2002 Prevention of Money Laundering Act.
According to the Indian Express, the Ministry of Finance is helming the plan, which could lead to online real-money gambling firms being categorized as reporting entities for anti-money-laundering purposes.
That would mean that gambling firms such as Games24x7, Winzo, and Dream11 would be forced to adhere to regulations on know-your-customer processes and the tracking and reporting of unusual transactions.
The legal status of online gambling is unclear across India. No specific federal law covers its legality, and although several states have banned some gambling activities, the pattern is not uniform across the country. The legal status of online gambling firms is also unclear.
Under the Prevention of Money Laundering Act, financial companies, including banks and financial intermediaries, are classified as reporting entities and must adhere to strict reporting and record-keeping rules.
These companies must provide information about their transactions and clients to the regulatory body, the Financial Intelligence Unit – India, which answers to the Ministry of Finance.
“We believe there is a lot of unaccounted money circulating within the online gaming apps and that has to be curtailed. So, the government is moving to bring them under the PMLA ambit and require them to track and report suspicious transactions,” an anonymous senior government official told the Indian Express.
Charlotte Capewell brings her passion for storytelling and expertise in writing, researching, and the gambling industry to every article she writes. Her specialties include the US gambling industry, regulator legislation, igaming, and more.
