https://the420.in/i4c-gets-pmla-powers-to-crackdown-on-cybercrime-financial-fraud-and-digital-offences-in-india/

In a significant move for fighting against online financial crimes, Indian Cybercrime Coordination Centre (I4C) has been conferred with powers under PMLA via Gazette notification dated 25th April 2025 by Government of India. This inclusion grants I4C specific roles and responsibilities in combating money laundering, particularly in cases involving cybercrime-related financial transactions.

Significance

Amendment under Section 66 of the Prevention of Money-Laundering Act, 2002 (PMLA) officially adds the Indian Cyber Crime Coordination Centre (I4C) to the list of agencies that can receive information from authorities under the PMLA

I4C is now empowered to get money laundering-related data officially and use it to strengthen cybercrime enforcement. I4C is currently headed by its CEO, Rajesh Kumar, a 2002-batch IPS officer.

How are Cybercrime and Money Laundering Linked?

For carrying out any illegal activities like financial frauds or online betting / gambling cybercriminals needs bank account. In order to slow down enforcement action, money is layered and withdrawn through various channels. This every cybercrime will  have an angle to money laundering.

I4C has been instrumental in identifying such mule accounts and illegal payment gateways. As per recent press release by Ministry of Home Affairs, I4C has shared over 6 lakh suspicious data with Banks and more than 19 lakh mule accounts were identified.

This move of empowering I4C under PMLA will boost inter-agency coordination, allowing for faster response and better enforcement action in cases where cybercrime intersects with money laundering.

“The inclusion of I4C under the PMLA framework is a historic and much-needed step. It empowers cybercrime investigators with stronger legal tools to disrupt financial flows linked to digital crime. This will significantly boost India’s ability to counter organized cybercriminal networks and protect financial ecosystems,” said Prof. Triveni Singh, Ex-IPS and Chief Mentor of Future Crime Research Foundation (FCRF).

Insights from UNODC Report released in April 2025

Multiple law enforcement actions have revealed that transnational cybercrimes like Digital Arrests, Investment Scams, Pig Butchering scam, romance scam are linked to south east asia based scam compounds. UNODC, which is actively tackling the developments has recently come up with a report on Scam Centres, Underground banking and illicit online market places in south east Asia.

Underground banking networks typically works on mule accounts and illegal payment gateways which are used in all sorts of illegal online activities. A strong money mule and digital money laundering identification system like CFCFRMS, developed by I4C will help identify such underground infrastructure in real time and using inter-agency data sharing coupled with enforcement, help prevent digital money laundering.

Cryptocurrency is also one of major instruments of money laundering which requires inter-agency coordination and data sharing. With the notification, I4C will join some of significant agencies / entities who are authorized under PMLA framework

Enforcement Directorate (ED)

Financial Intelligence Unit-India (FIU-IND)

Customs and Central Excise Department officers

Income Tax authorities

Members of recognized stock exchanges (under Securities Contracts Regulation Act, 1956)

Officers under the Narcotic Drugs and Psychotropic Substances Act, 1985

Police officers

Pension Fund Regulatory and Development Authority officers

Department of Posts officers

Reserve Bank of India (RBI)

Securities and Exchange Board of India (SEBI)

Insurance Regulatory and Development Authority of India (IRDAI)

Closing Note

While the Gazzate Notification will empower I4C for inter-agency data sharing and focused action against money mules, its Non-Investigative Role will still remain intact. Unlike the ED, I4C does not have direct powers to investigate or prosecute money laundering offenses under the PMLA. Its role will be primarily in coordination and support, focusing on information sharing and technical assistance.