The Financial Intelligence Unit-India (FIU-IND) and the Pension Fund Regulatory and Development Authority (PFRDA) 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 & Reporting: Both agencies will share relevant intelligence from their respective databases and lay down procedures for reporting by regulated entities under PML Rules.
- International Coordination: The MoU will facilitate exchange of information with foreign FIUs through the Egmont Principles of Information Exchange.
- AML/CFT Capacity Building: Both agencies will undertake outreach and training programmes for regulated/reporting entities, focusing on upgrading Anti-Money Laundering and Combating Financing of Terrorism (AML/CFT) capabilities among PFRDA-regulated entities.
- Nodal Officers: Each party will designate a nodal officer along with an alternate nodal officer to facilitate regular coordination and interaction between the two agencies- a notable feature distinguishing this MoU.
- Risk Assessment & Red Flags: 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 PMLA, PML Rules, and PFRDA guidelines.
- Quarterly Meetings: Both parties will hold quarterly meetings to exchange information and deliberate on issues of mutual interest, ensuring alignment with international standards.
FIU-IND
- It is the 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.
PFRDA
- It is the statutory regulatory body established under the PFRDA Act, 2013, responsible for regulation, development, and supervision of India’s pension sector — including the National Pension System (NPS) and Atal Pension Yojana (APY). It regulates intermediaries such as pension funds, central recordkeeping agencies, trustees, aggregators, and points of presence.