India: Issued Compliance Show Cause Notice from Financial Intelligence Unit India (FIU IND) to Binance

On 28 December 2023, the Financial Intelligence Unit India (FIU IND) issued a compliance Show Cause Notice to Binance, an offshore Virtual Digital Assets Service Provider (VDA SP). This action was taken under Section 13 of the Prevention of Money Laundering Act, 2002 (PMLA). Binance, along with other VDA SPs, was found to be non-compliant with the Anti Money Laundering/Counter Financing of Terrorism (AML-CFT) framework, including with the business registration requirement, in March 2023. The FIU IND has also requested the Ministry of Electronics and Information Technology to block the URLs of Binance for operating illegally without complying with the PML Act in India.