RBI and FIU-IND Join Forces to Combat Money Laundering

The Financial Intelligence Unit-India and the Reserve Bank of India have entered a partnership to enhance coordination in line with PMLA rules. Their focus will be on information sharing and anti-money laundering skills, with quarterly meetings to ensure ongoing collaboration.

In a strategic move to bolster the fight against money laundering, the Financial Intelligence Unit-India (FIU-IND) and the Reserve Bank of India (RBI) have signed a Memorandum of Understanding aimed at enhancing coordination and compliance with existing financial regulations.

The MoU emphasizes the exchange of intelligence and information, while both entities will jointly identify 'red flag indicators' for suspicious transactions, according to an official statement from the finance ministry. This cooperation includes establishing protocols for regulated and reporting entities to report to FIU-IND under the Prevention of Money Laundering (PML) Rules.

Signatories to this crucial agreement include Vivek Aggarwal, Director of FIU-IND, and RLK Rao, Executive Director of RBI's Department of Regulation. The partnership will also focus on upgrading anti-money laundering and combating financing of terrorism skills within entities regulated by RBI, with quarterly meetings planned for ongoing dialogue and information sharing.

(With inputs from agencies.)