Recently, the Financial Intelligence Unit – India (“FIU-Ind”) has issued show-cause notices to several offshore Virtual Digital Asset Service Providers (“VDASP”) for non-compliance with provisions of the Prevention of Money Laundering Act, 2002 (“PMLA”) and for non-registration with the FIU-Ind, post amendment to PMLA on march 07, 2023, while catering to the Indian customers and operating in the Indian market.Continue Reading FIG Paper (No. 33 – Series 2): Compulsory Registration of Off-shore Virtual Digital Asset Service Providers with FIU-IND?
Shrish Gautam
Associate in the FSRP and Disputes Practice at the Delhi NCR office of Cyril Amarchand Mangaldas. Shrish advises on financial service regulatory matters and has experience in mergers & acquisitions and disputes related to insolvency and bankruptcy matters as well as civil and criminal litigations. He can be reached at shrish.gautam@cyrilshroff.com
FIG Paper (No. 18 – Series 1)- Technology/ Financial Services – Recent Law Enforcement Trends
The last few years have seen an unprecedented rise in digital payment transactions via Payment Aggregators (“PA”), Payment Gateways (“PG”), and Unified Payments Interface (“UPI”), via third-party application providers (TPAPs), with PAs undergoing licensing by the Reserve Bank of India (“RBI”), under the March 17, 2020, RBI PA/PG Guidelines. Retail payments historically would flow via NEFT/ RTGS/ IMPS, etc. However, UPI has now become the preferred payment mode for online payments, constituting a significant volume of small ticket retail payments in India, which is mostly via PAs. The payment architecture, which was earlier ‘card network’ driven via entities licensed under the Payment and Settlement Systems Act, 2007 (as a ‘payment system operator’), is increasingly moving towards PA/PGs, including for digital asset exchanges, online shopping, check-out financing and digital lending (where significant changes have been implemented by the RBI recently, including via the September 2022 Digital Lending Guidelines).Continue Reading FIG Paper (No. 18 – Series 1)- Technology/ Financial Services – Recent Law Enforcement Trends