Context:
The Financial Intelligence Unit – India (FIU-IND) and the Reserve Bank of India (RBI) have signed a Memorandum of Understanding (MoU) to enhance cooperation and coordination in combating money laundering and terrorism financing in the financial sector.
Key Areas of Cooperation
- Appointment of Nodal Officers:
- Both FIU-IND and RBI will appoint a nodal officer and an alternate nodal officer to facilitate smooth coordination and communication.
- Intelligence Sharing:
- Exchange of relevant financial intelligence and data available in each party’s database to strengthen surveillance and compliance.
- Reporting Procedures:
- Joint formulation of reporting procedures for regulated and reporting entities as per the Prevention of Money Laundering (PML) Rules.
- Training & Outreach:
- Conduct awareness programs, training sessions, and outreach initiatives for regulated entities to enhance understanding of AML/CFT obligations.
- Skill Upgradation:
- Upgrading AML/CFT capabilities among entities regulated by RBI through collaborative efforts.
- Risk Assessment:
- Evaluation of money laundering and terror financing (ML/TF) risks and vulnerabilities in various financial sub-sectors.
- Red Flag Indicators:
- Identification and dissemination of red flag indicators for detecting suspicious transactions.
- Supervision & Monitoring:
- Joint efforts in supervising compliance of RBI-regulated entities under PMLA, PML Rules, and relevant RBI directives.
- International Standards:
- Ensuring compliance with global standards on AML/CFT, aligning with FATF recommendations.
- Quarterly Coordination Meetings:
- Regular quarterly meetings to review and discuss key issues and exchange updates.
This collaboration is expected to significantly enhance the financial sector’s resilience against money laundering and terror financing risks, reinforcing India’s commitment to financial integrity and global AML/CFT standards.
