The ears of the Modi government have been raised regarding online gaming. In these games, the government has now started seeing a big 'game'. Because with the huge amount at stake, the government is now beginning to suspect that online gaming can be used to convert black money into white (money laundering) and the money earned from it can be used to carry out terrorist activities. Is.
According to the news of Business Standard, these governments can bring online gaming and related activities under the JD(S) of the Prevention of Money Laundering Act (PMLA). If gaming companies are brought under the ambit of anti-money laundering laws, they may have to ask people participating in the game to do KYC first.
Let us tell you that according to the India Mobile Gaming Report 2021, the number of people playing online games has increased by 170 percent in the top-30 small cities of India compared to 2020. In some small towns, the number of such people has increased by 100 to 200 percent.
Identity card of bettors not available in online gaming
The main reason behind bringing gaming companies under the ambit of Anti-Money Laundering Act is that the investigative agencies are unable to trace the exchange of money, because of the information and their official identity cards of the customers who were betting in online gaming. were not available at all. Sources with knowledge of the matter said that lakhs of rupees have been laundered from these gaming applications, but the information about the people involved in this was not with the gaming companies.
What will be the effect of bringing gaming app to PMLA
Along with making KYC mandatory, bringing gaming apps under PMLA will also mean that these companies will have to appoint a director and a chief officer separately.
With gaming companies being granted reporting entity status, these entities will have to provide the financial intelligence unit (FIU) the sender and recipient information and other related details.
Gaming companies can also be asked to provide details of transactions above Rs 50,000.
Before bringing gaming companies under the ambit of PMLA, it was also suggested to study the things included in the Gambling Act of Britain.
Some companies registered in Malta
The Finance Ministry and the Reserve Bank of India (RBI) have expressed concern. He has said that there is no system to control gaming companies, which is a matter of concern. Although gaming companies are registered with the Ministry of Corporate Affairs, there is no restriction on foreign investment in them. Sources said some of these companies are registered in Malta. Malta comes under the 'Grey' list of the FATF.
