The Union government is planning to bring online skill-based gaming under the purview of the Prevention of Money Laundering Act (PMLA), as per a report in Business Standard. It means that gaming companies will have to comply with KYC (know your customer) norms once the sector is regulated by the PMLA, the report added. The authorities are reportedly considering the United Kingdom's Gambling Act for reference as India does not have a framework of its own. Moreover, the finance ministry and the Reserve Bank of India (RBI) have expressed concern over the lack of a framework for regulating online gaming with stakes, the business daily added. The absence of a framework to regulate gaming has plunged the sector into a lot of uncertainty. Many bad actors have mushroomed in the wake, posing several problems out of which money laundering is one. The move is likely an attempt to enforce checks and balances to prevent money laundering and terror-financing activities. What will happen once the step is taken? The companies will have to appoint a designated director and a principal officer once the law is amended to bring skill gaming apps and sites under it, BS revealed. The companies, which will turn into reporting entities, will have to share details of the remitter, the beneficiary, and other relevant information with the Financial Intelligence Unit (FIU), BS said in its report adding that companies may have to flag suspicious transactions above Rs. 50,000. The deliberation over the inclusion of gaming under the…
