The Financial Intelligence Unit – India (FIU-IND), on January 8, 2026, issued the updated Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT) and Combating Proliferation Financing (CPF) Guidelines for Reporting Entities providing services related to Virtual Digital Assets (VDAs). These Guidelines consolidate the regulatory framework applicable to VDA Service Providers (VDA SPs) under the Prevention of Money Laundering Act, 2002 and allied laws.
The Guidelines formally operationalise the inclusion of VDA SPs as Reporting Entities, pursuant to Government notifications issued in March 2023 and November 2023, and designate FIU-IND as the AML/CFT/CPF regulator for such entities. They prescribe mandatory requirements relating to registration with FIU-IND, governance structures, appointment of Designated Director and Principal Officer, formulation of AML/CFT/CPF policies, and adoption of a risk-based approach to client acceptance and monitoring.
Further, the Guidelines lay down detailed obligations on Client Due Diligence (CDD), ongoing transaction monitoring, sanctions screening, compliance with the Travel Rule, reporting of Suspicious Transactions (STRs), record-keeping, and handling of higher-risk activities such as unhosted wallets, anonymity-enhancing crypto tokens, mixers/tumblers, and dealings with unregistered VDA service providers. These measures aim to strengthen India’s AML/CFT framework in the rapidly evolving virtual digital asset ecosystem.
