Overview
- As of March 2025, 49 VDA service providers were on the FIU registry, including 45 based in India and four offshore.
- Suspicious transaction reports highlighted misuse tied to hawala transfers, gambling, scams and fraud, including one case linked to an illegal adult content site.
- Further red flags included connections to child sexual abuse material, terror financing, darknet services and other proceeds of crime.
- The FIU’s analysis identified regional clusters of suspicious activity and digital assets commonly used in illicit flows.
- Under the PMLA framework adopted in 2023, exchanges operate under FIU supervision and must file STRs, disclose banking relationships, appoint compliance officers, conduct internal audits and apply risk-based CDD/EDD and sanctions screening.