India, US Discuss Illicit Finance Risk & Virtual Asset AML

New Delhi, Dec 14 (PTI) Revenue authorities of India and the US have discussed ways to strengthen efforts to address illicit finance risk and accelerate global implementation of anti-money laundering standards for virtual assets.

Revenue Secretary Sanjay Malhotra and US Treasury Under Secretary for Terrorism and Financial Intelligence Brian Nelson co-chaired the India-US Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) Dialogue here on December 13.

A joint statement issued on Thursday said the participants in the sessions discussed each country's experience with virtual assets and virtual asset service providers, given the focus area of both sides to promote responsible innovation while mitigating illicit finance risks.

"Both parties recognised the pressing need to accelerate global implementation of AML/CFT standards for virtual assets, in line with the Financial Action Task Force (FATF) Recommendations, to effectively addressing the issue of regulatory arbitrage," the statement said.

Participants discussed each country's efforts to enhance transparency in beneficial ownership, including the implementation of beneficial ownership registries, tools to improve data quality, and verification of the information.

This is a crucial step in combating money laundering and other financial crimes, as it allows authorities to track the flow of funds and identify those who are ultimately responsible for them, the statement added.

It also discussed the current challenges each jurisdiction is facing with regard to sanctions implementation, as well as opportunities to improve cooperation and information sharing to better combat sanctions evasion and terrorist financing in the region and globally.

Our delegations identified various areas in AML/CFT where India and the US can jointly work together and share experiences and best practices, it added.

India and the US agreed to convene the dialogue again next year to build on this week's productive discussions and pursue opportunities to enhance coordination and cooperation bilaterally and multilaterally, including working together within the FATF.

Reconvening and co-chairing the India-US AML/CFT Dialogue reaffirms the commitment of India and the US to work jointly to address illicit finance risk in the international financial system, the statement added.