The Enforcement Directorate has uncovered a money laundering operation linked with illegal gaming and betting apps via Kirana stores. This is as per a report by Inc42.
The Kirana store owners were reportedly unaware of their involvement in illegal gambling activities and believed that they worked under the RBI's domestic money transfer (DMT), reported Times of India.
The investigation led by ED reportedly led them to a 40-year-old mobile accessories shop owner in a Dahisar slum, and another retail shop in Naya Nagar, Mira Road.
DMT framework allows money transfers to any bank account within the country. For example, a user can instantly send money to any NEFT (national electronic funds transfer) or IMPS (immediate payment service) to a supported bank in the country and the receiver will get it credited in their account.
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The scheme is reportedly intended to provide easy and secure money transfer options for migrants who lack access to formal banking services.
The development comes at a time when ED has stepped up its vigilance on such gambling applications, on the rising influence of offshore betting platforms in India, a few weeks ago.
It was earlier reported that over two dozen offshore gaming applications were under the radar of ED for remitting and round-tripping funds, as they caused gamblers to incur losses to the tune of Rs 1 Lakh crore.
All these illegal gambling labels, which are located outside the country, reportedly find Kirana stores, small retail outlets and even fake e-commerce websites to distribute winnings in small amounts, complicating the tracking of illicit funds for government agencies.
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The Consumer Affairs Ministry was thinking about taking action against indirect and surrogate advertisements promoting illegal betting and gambling, especially during the cricket and election season, when activities were high.
The Ministry of Information and Broadcasting (MIB) reportedly advised all endorsers and influencers on social media to abstain from promoting or advertising, including surrogate advertisements, of offshore online betting and gambling platforms, in March.
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