New Delhi– The Financial Intelligence Unit-India (FIU-IND) and the Reserve Bank of India (RBI) signed a Memorandum of Understanding (MoU) on Thursday to enhance coordination and cooperation in combating money laundering and terrorist financing.
The MoU outlines collaboration between the two institutions for effective implementation of the Prevention of Money Laundering Act (PMLA) and associated regulations. It provides for the sharing of relevant intelligence and information from each organization’s databases and establishes formal channels of communication through appointed nodal and alternate nodal officers.
The agreement also sets out procedures for how RBI-regulated entities should report transactions to FIU-IND under PMLA rules. Additionally, the MoU includes provisions for conducting joint training programs, enhancing Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) capabilities, and identifying red flag indicators for suspicious transactions.
Both organizations will jointly assess risks and vulnerabilities related to money laundering and terror financing within financial sub-sectors, and supervise the compliance of regulated entities with AML/CFT obligations.
To ensure ongoing collaboration, the MoU mandates quarterly meetings to discuss issues of mutual interest and track progress. It also emphasizes adherence to international AML/CFT standards.
The MoU was signed by Vivek Aggarwal, Director of FIU-IND, and R.L.K. Rao, Executive Director of the RBI’s Department of Regulation. Senior officials from both institutions were present at the signing.
FIU-IND serves as India’s central agency for collecting, analyzing, and disseminating financial intelligence related to suspicious transactions, supporting law enforcement and international counterparts in the global fight against financial crime. (Source: IANS)
