Financial Intelligence Unit-India (FIU-IND) and Securities and Exchange Board of India (SEBI) signed a comprehensive Memorandum of Understanding (MoU) to enhance information sharing and coordination in India’s fight against money laundering and financial crimes.
Key Provisions of MoU
- Intelligence Sharing: Both agencies will share relevant intelligence and information available in their respective databases, and lay down procedures for reporting by regulated entities to FIU-IND under PML Rules.
- International Coordination: The MoU will assist in exchange of information with foreign Financial Intelligence Units (FIUs) through the Egmont Principles of Information Exchange.
- AML/CFT Capacity Building: Both agencies will 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 SEBI-regulated entities.
- Risk Assessment: The cooperation includes assessment of Money Laundering and Terror Financing (ML/TF) risks and vulnerabilities across relevant financial sub-sectors, and identification and dissemination of red flag indicators for suspicious transactions.
- Compliance Monitoring: Both parties will supervise and monitor compliance by reporting entities with obligations under the PMLA, PML Rules, and SEBI guidelines.
- Quarterly Meetings: Both parties will hold quarterly meetings to exchange information and deliberate on issues of mutual interest, while ensuring alignment with applicable international standards.
FIU-IND
- It is central national agency responsible for receiving, processing, analysing, and disseminating information relating to suspect financial transactions and coordinating efforts against money laundering and terror financing.
SEBI
- It is statutory regulatory body established under the Securities and Exchange Board of India Act, 1992, responsible for regulating India’s securities market and protecting investor interests.