In a move to strengthen the framework for combating money laundering and financial crimes, Financial Intelligence Unit-India (FIU-IND) has signed Memoranda of Understanding (MoUs) with Securities and Exchange Board of India and Pension Fund Regulatory and Development Authority to enhance information sharing and inter-agency coordination.
The MoUs were signed by FIU-IND Director Amit Mohan Govil, with SEBI Whole Time Member Sandip Pradhan and PFRDA Whole Time Member Randip Singh Jagpal in the presence of PFRDA Chairperson Sivasubramanian Ramann.
Information sharing framework
The agreements provide for structured sharing of intelligence and relevant information available in the respective databases of the agencies. They also lay down procedures and modalities for reporting by regulated and reporting entities to FIU-IND under the provisions of the Prevention of Money Laundering Rules.
The MoUs will facilitate exchange of information with foreign financial intelligence units in line with the Egmont Principles of Information Exchange, strengthening India’s global cooperation in tackling illicit financial flows.
Capacity building and risk assessment
The collaboration envisages joint outreach and training programmes for regulated and reporting entities, with a focus on strengthening Anti-Money Laundering and Combating Financing of Terrorism (AML/CFT) capabilities among entities under SEBI and PFRDA.
The agencies will also undertake assessment of money laundering and terror financing risks across financial sub-sectors, identify and disseminate red flag indicators for suspicious transactions, and enhance supervision and monitoring of compliance with obligations under the Prevention of Money Laundering Act and related rules.
Background
FIU-IND is the central national agency responsible for receiving, processing, analysing and disseminating information relating to suspect financial transactions, and for coordinating efforts to combat money laundering and financing of terrorism.