Recently the Financial Intelligence Unit-India (FIU-IND) and the Reserve Bank of India (RBI) signed a Memorandum of Understanding (MoU) to boost coordination and information exchange for enforcing the Prevention of Money Laundering Act (PMLA).

About Financial Intelligence Unit – India (FIU-IND)

• FIU-IND is the central national agency responsible for handling financial intelligence related to suspicious transactions.
• It plays a vital role in countering money laundering and financing of terrorism, both domestically and internationally.
• Establishment: FIU-IND was established in November 2004 by the Government of India.
• Governance: It functions as an independent body, directly reporting to the Economic Intelligence Council (EIC) chaired by the Union Finance Minister.

Core Functions of FIU-IND

• Collection of Information: Receives various reports like Cash Transaction Reports (CTRs), Suspicious Transaction Reports (STRs), and others from designated entities.
• Analysis of Data: Examines financial data to detect patterns indicative of money laundering or related offenses.
• Information Sharing: Disseminates actionable intelligence to law enforcement agencies, regulatory authorities, and international counterparts.
• Central Repository Role: Maintains a national database of all received financial intelligence reports.
• Coordination: Works to build a robust national and international network for financial intelligence sharing.
• Research and Trend Analysis: Identifies emerging money laundering typologies and strategic risk areas through continuous research.

Significance of the MoU Between FIU-IND and RBI

• The MoU will enhance cooperation and systematic information exchange between RBI and FIU-IND, ensuring effective AML/CFT (Anti-Money Laundering/Combating Financing of Terrorism) compliance among regulated entities.
• It provides a structured mechanism for training, supervision, intelligence sharing, and risk assessment, thereby strengthening India’s financial integrity framework.

DOWNLOAD PDF