India Seeks FATF Oversight for Online Gaming Companies

At the Financial Action Task Force Meeting last month, India sought to include online gaming companies in its anti-money laundering and counter-terrorism financing frameworks. Strict KYC protocols and mandatory reporting of suspicious activities are some of the measures under these frameworks that could help curb illegal transactions through online platforms.

The Enforcement Directorate (ED) unearthed an illegal betting network last year that was linked to the online gaming app Mahadev. Although foreign gaming companies are required to register in India and crypto exchanges are covered under the Prevention of Money Laundering Act, the extent is inadequate, and compliance is limited.

A joint FATF-APG-EAG assessment of India’s measures to tackle illicit finance concluded that India has implemented the required frameworks and is achieving good results, including in risk understanding, access to beneficial ownership information, and the effective use of financial intelligence. India also effectively cooperates both domestically and internationally.