- The Ministry of Finance notified the Prevention of Money- laundering (Maintenance of Records) Amendment Rules, 2023 to amend the Prevention of Money-laundering (Maintenance of Records) Rules, 2005. The provisions came into effect on 7-3-2023.
- In a separate notification, Ministry of Finance has also brought cryptocurrencies and other virtual digital assets (VDAs) trade under PMLA ambit to prevent misuse of crypto through money laundering and other illegal activities.
- Apart from this, participating in financial services related to safe custody of virtual digital assets and sale and offering of virtual digital assets will also come under the money laundering Act.
- Under this, Indian crypto exchanges will have to report suspicious activity to the Financial Intelligence Unit of India (FIU-IND).
- In the 2022-23 Budget, the government had imposed a 30% tax on income from transactions in such properties.
- Further, to bring such assets into the tax net, it introduced 1% TDS (Tax Deducted at Source) on transactions in such asset classes above a certain threshold. Gifts in crypto and digital assets were also taxed.
Ministry of Finance notified the Prevention of Money- laundering (Maintenance of Records) Amendment Rules
