Crypto-related crimes cross ₹950 crore mark: FM Sitharaman

The Finance Minister, Nirmala Sitharaman, has informed the Parliament that the Financial Action Task Force (FATF) has made several amendments to address the increasing use of virtual assets for money laundering and terrorist financing.

This was in response to concerns raised by Dravida Munnetra Kazhagam (DMK) MP Velusamy P about the growing use of virtual assets for criminal activities, and how the government was detecting and monitoring such activities.

The Finance Minister also mentioned that the Reserve Bank of India (RBI) has circulated public notices regarding cryptocurrencies, cautioning people about their use.

“RBI has been cautioning users, holders and traders of Virtual Currencies (VCs) vide public notices from 2013, that dealing in VCs is associated with potential economic, financial, operational, legal, customer protection and security related risks,” replied Sitharaman.

Sitharaman further informed that the FATF has adopted several methods to prevent growing illegitimate activities from cryptocurrencies.

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“RBI has also advised its regulated entities to continue to carry out customer due diligence processes for transactions in VCs, in line with regulations governing standards for Know Your Customer (KYC), Anti-Money Laundering (AML), Combating of Financing of Terrorism (CFT), obligations under Prevention of Money Laundering Act (PMLA), 2002, etc,” added Sitharaman.

Crime amounting to ₹953.70 crores including the arrest of five persons and six prosecution complaints have been filed to date before the special court, under the Prevention of Money Laundering Act, 2002 (PMLA).

“Enforcement Directorate is investigating several cases under the provisions of PMLA and foreign exchange management act, 1999 (FEMA) related to cryptocurrencies,” the finance minister added.