FIU-IND and RBI Forge MoU to Enhance Anti-Money Laundering Efforts
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Synopsis
On April 17, the Financial Intelligence Unit-India (FIU-IND) and Reserve Bank of India (RBI) signed an MoU to bolster collaboration in enforcing the Prevention of Money Laundering Act. This agreement includes sharing intelligence and enhancing training for regulatory compliance.
Key Takeaways
- FIU-IND and RBI signed an MoU to enhance coordination.
- Collaboration focuses on the Prevention of Money Laundering Act.
- Regular sharing of intelligence between both entities.
- Quarterly meetings to discuss compliance and risks.
- Training initiatives for reporting entities.
New Delhi, April 17 (NationPress) The Financial Intelligence Unit-India (FIU-IND) and the Reserve Bank of India (RBI) entered into a Memorandum of Understanding (MoU) on Thursday, marking a significant step in their ongoing initiatives to enhance collaboration aimed at the effective enforcement of the Prevention of Money Laundering Act and its accompanying regulations.
As per the MoU, both parties, FIU-IND and RBI, will work together in areas of shared interest, which include the exchange of pertinent intelligence and information found within their respective databases.
Each entity will designate a nodal officer alongside an alternate nodal officer to facilitate communication between them.
The MoU outlines the procedures and methods by which regulated entities must report to the FIU-IND in accordance with the PML Rules.
Additionally, it includes provisions for outreach and training initiatives aimed at enhancing the Anti-Money Laundering/Combating Financing of Terrorism (AML/CFT) capabilities of the reporting entities governed by the RBI.
The two organizations will also conduct assessments to identify Money Laundering/Terror Financing (ML/TF) risks and vulnerabilities present within applicable financial sectors.
Moreover, the MoU stipulates the recognition of red flag indicators for suspicious transactions by both the RBI and FIU-IND.
It also mandates the supervision and oversight of compliance by reporting entities regulated by the RBI concerning their obligations under the PMLA, PML Rules, and RBI directives.
Compliance with relevant international standards has been explicitly outlined in the MoU.
The RBI and FIU-IND are required to hold quarterly meetings to discuss and exchange information on topics of mutual concern.
The MoU was signed by Vivek Aggarwal, Director of FIU-IND, and R.L.K. Rao, Executive Director of the Department of Regulation at RBI.
Others present at the signing included Bedobani Chaudhuri, Additional Director of FIU-IND; Veena Srivastava, Chief General Manager of the Department of Regulation at RBI; Avinash Kumar, Deputy Director of FIU-IND; and Sanjoy Ghosh, FSE of FIU-IND.
The Financial Intelligence Unit - India (FIU-IND) serves as the central national agency tasked with receiving, processing, analyzing, and disseminating information related to suspicious financial transactions to enforcement bodies and international FIUs.
