FIU inks pacts with SEBI and PFRDA

• In a significant step towards strengthening India’s fight against money laundering and financial crimes, the Financial Intelligence Unit-India (FIU-IND) inked separate Memorandum of Understandings (MoUs) with Pension Fund Regulatory and Development Authority (PFRDA) and Securities and Exchange Board of India (SEBI) to enhance information sharing and coordination.

Highlights of MoUs:

• The MoUs aim to enable both agencies to undertake outreach and training programmes for regulated/reporting entities, with a focus on upgrading Anti-Money Laundering and Combating Financing of Terrorism (AML/CFT) capabilities among entities regulated by the PFRDA and SEBI. 

• The collaboration will involve sharing relevant intelligence and information available in their respective databases, and laying down the procedures and modalities for reporting by regulated entities and reporting entities to FIU-IND under the provisions of the PML Rules.

• The MoUs shall also assist in exchange of information with foreign FIU through Egmont Principles of Information Exchange.

• The cooperation will also include assessment of Money Laundering and Terror Financing (ML/TF) risks and vulnerabilities across relevant financial sub-sectors, identification and dissemination of red flag indicators for suspicious transactions, and supervision and monitoring of compliance by reporting entities with obligations under the Prevention Of Money Laundering Act (PMLA), Prevention of Money-laundering (Appeal) Rules, and guidelines of SEBI and PFRDA.

Financial Intelligence Unit - India

• Financial Intelligence Unit-India (FIU-IND) was established by the government in November 2004 as the central national agency responsible for receiving, processing, analysing and disseminating information relating to suspect financial transactions. 

• FIU-IND is also responsible for coordinating and strengthening efforts of national and international intelligence, investigation and enforcement agencies in pursuing the global efforts against money laundering and financing of terrorism. 

• FIU-IND is an independent body reporting directly to the Economic Intelligence Council (EIC) headed by the Union Finance Minister.

• FIU-IND is headed by the director, who is an officer of the rank of additional secretary to the government of India. It is an administrative FIU and does not investigate cases.

Functions of FIU-IND:

• Collection of Information: Act as the central reception point for receiving Cash Transaction reports (CTRs), Non-Profit Organisation Transaction Report(NTRs), Cross Border Wire Transfer Reports (CBWTRs), Reports on Purchase or Sale of Immovable Property (IPRs) and Suspicious Transaction Reports (STRs) from various reporting entities.

• Analysis of Information: Analyse received information in order to uncover patterns of transactions suggesting suspicion of money laundering and related crimes.

• Sharing of Information: Share information with national intelligence/law enforcement agencies, national regulatory authorities and foreign Financial Intelligence Units.

• Act as Central Repository: Establish and maintain national data base on the basis of reports received from reporting entities.

• Coordination: Coordinate and strengthen collection and sharing of financial intelligence through an effective national, regional and global network to combat money laundering and related crimes.

• Research and Analysis: Monitor and identify strategic key areas on money laundering trends, typologies and developments.

PFRDA

The Pension Fund Regulatory and Development Authority is the statutory regulatory body established under the PFRDA Act, 2013, responsible for the regulation, development and supervision of the pension sector in India, including the National Pension System and Atal Pension Yojana. PFRDA provides a comprehensive regulatory and supervisory framework for intermediaries such as pension funds, central recordkeeping agencies, trustees, aggregators and points of presence to ensure orderly growth of the pension ecosystem and protection of subscriber interests.