FIU-IND Registration of VDA Service Providers

FIU-IND Registration Requirement VDA Service Providers with FIU-IND

FIU-IND Mandatory registration:

In accordance with the Prevention of Money-Laundering Act, 2002 (PMLA) and the Prevention of Money-Laundering Rules (PMLR), registration with FIU-IND is a mandatory prerequisite for all Virtual Digital Asset Service Providers (VDA SPs) engaged in activities notified by the Central Government under Notification S.O. 1072(E) dated 7 March 2023.  in case failure to register with FIU-IND, it shall be treated as a violation of the PMLA and may attract action under Section 13(2) of the PMLA, in addition to any other enforcement measures as may be applicable.

Purpose of registration under FIU IND

Registration with FIU-IND ensures the maintenance of accurate and comprehensive records of each Reporting Entity (RE), including:

• Details of the Designated Director (DD);
• Principal Officer (PO);
• Principal place of business; and
• Ownership and control structure, including significant beneficial ownership.

Initiation of Registration under FIU IND

Online initiation under FIU IND

The registration process shall be initiated by the applicant VDA SP by registering its details on the FINGate portal. Upon successful submission:

• The application status will be displayed as “Awaiting Approval”;
  • A temporary Reference ID will be generated; and
  • An acknowledgement email will be sent to the applicant.
• Purpose of Reference ID : The Reference ID is generated only for reference and future correspondence with FIU-IND and does not constitute formal registration.
• Grant of formal registration : Formal registration shall be granted only after completion of the prescribed due diligence process, which includes Submission of all required documents; An in-person meeting with FIU-IND (where applicable); and Final approval by the Director, FIU-IND.
• Issuance of FIU RE-ID : Upon satisfactory completion of the registration process, a FIU Reporting Entity Identification Number (FIU RE-ID) shall be generated and allotted to the applicant.

Submission of Documents by the Applicant

The applicant VDA SP shall submit the prescribed documents and information, clearly stating:

• Whether the entity is currently operational (and the date of commencement), or
• Whether the entity is yet to commence operations / under development, along with an expected or tentative timeline.

The in-person meeting, where required, shall be scheduled only after confirmation of operational readiness and submission of all required documents at least 15 days in advance.

Documents/Information Required to be Submitted for FIU-IND Registration 

The applicant VDA Service Provider (VDA SP) shall submit the following documents and information as part of the FIU-IND registration process:

a) Business & Ownership Details

a) Nature of Services Note : A brief note describing the nature of services offered and explaining how the applicant’s activities fall within the scope of activities notified by the Central Government

b) Corporate Structure & Ownership: A detailed corporate structure note, including:

• Organizational chart (organogram); and
• Details of Significant Beneficial Owners (SBOs).
• Statutory & Financial Records

c) Corporate Filings: Copies of:

• Incorporation documents;
• Annual Returns;
• Balance Sheets; and
• Profit & Loss Accountsfor the last three financial years, as filed with the MCA, along with details of the registered office and/or principal place of business in India.

d) GST Compliance Documents

• GST registration certificates for all operating States/UTs; and
• GST returns for the last three financial years, clearly indicating the nature of activities.

e) Income-tax & TDS Records

• Income-tax Returns; and
• Forms 26Q / 26QF / 26QE, as applicable, for TDS on VDA transactions.
• Contracts & Business Relationships

f) Agreements with VDA Ecosystem Participants:

Copies of all domestic and international agreements/contracts with:

• Exchanges;
• Brokers;
• Custodians;
• Intermediaries; or
• Other VDA SPs, along with a brief description of the scope and function of each arrangement.

g) PACT Certificate :

PACT (Partner Accreditation for Compliance and Trust) certificate obtained from FIU-IND registered VDA SPs with whom the applicant has existing or proposed business relationships (B2B, broker, intermediary, etc.). Declarations & Compliance Information

h) Self-Declaration on Legal Proceedings: A self-declaration stating that:

• No proceedings have been initiated by or are pending with any law enforcement agency; and
• No criminal cases are initiated or pending against the applicant or its directors/partners.
  • FIU-IND Questionnaire : A duly filled questionnaire issued by FIU-IND, covering various aspects of AML/CFT/CPF compliance. Cybersecurity & Technology Controls

I) Cyber Security Audit Certificate :

A Cyber Security Audit Certificate issued by a CERT-In empanelled auditor, certifying compliance with: Applicable cybersecurity frameworks; and CERT-In Directions dated 28 April 2022, issued under Section 70B(6) of the Information Technology Act, 2000.

The audit must be comprehensive and risk-proportionate, covering all critical risk domains, and must certify whether the environment is secure to host and operate notified VDA activities. The scope of the audit shall include, inter alia:

• Governance, compliance, access control, and insider risk;
• Infrastructure, network, and endpoint security;
• Application security and AML systems security, including:
  • KYC systems,
  • Transaction monitoring,
  • Wallet security,
  • Cryptographic controls,
  • Backup and recovery;
• Third-party, cloud service, exchange, custodian, and API risks;
• Incident detection and response, including CERT-In reporting readiness.

J) Additional Information : Any other document or information as may be:

• Specifically required by FIU-IND; or
• Voluntarily disclosed by the applicant to facilitate completion of the registration process.

Examination of Documents by FIU officers

All documents and information submitted (in full and complete form) shall be examined by FIU-IND. If found satisfactory, the applicant shall be intimated regarding the scheduling of an in-person meeting.

In-Person Meeting with applicant with FIU officer

Purpose & Attendance in-person meeting with FIU officer :  The in-person meeting is conducted to assess and verify the AML/CFT/CPF compliance framework, systems, tools, and processes implemented by the applicant. Attendance by both the following officials is mandatory Designated Director and Principal Officer,

System Demonstration by applicant :

During the meeting, the applicant shall provide a live demonstration / walkthrough of AML/CFT/CPF systems and tools, including:

• KYC and Customer Due Diligence systems;
• Transaction Monitoring systems;
• Blockchain analytics tools;
• Travel Rule compliance mechanisms;
• Sanctions screening systems; and
• Any other tools used to comply with obligations under Chapter IV of the PMLA, PMLR, and these Guidelines.

Discretion of FIU-IND

The Director, FIU-IND reserves the right to deny or cancel registration if the applicant fails to comply with obligations under the PMLA, PMLR, or the prescribed AML/CFT/CPF framework.

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