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Financial Intelligence Unit – India (FIU-IND)

  • 27 Mar 2019

Why is it in News?

FIU-IND is in news due to recent arrest and auction of the properties of fugitive jeweler Nirav Modi.

Why was FIU-IND set up?

  • Financial Intelligence Unit – India (FIU-IND) was set by the Government of India in 2004 as the central national agency responsible for receiving, processing, analyzing 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 related crimes.

What are the Functions of FIU-IND?

The primary responsibility of FIU-IND is to collect the data, analyse the data and disseminate that data to the regulators like RBI, SEBI, IRDAI etc. The functions of FIU-IND are:

  • Collection of Information: Acts as the central reception point for receiving Cash Transaction Reports (CTRs), 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: Analyze 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 cash transactions and suspicious transactions 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.

Composition of FIU-IND:

  • The FIU-IND is a multidisciplinary body with members from various government departments. The members are inducted from organizations including Central Board of Direct Taxes (CBDT), Central Board of Excise and Customs (CBEC), Reserve Bank of India (RBI), Securities Exchange Board of India (SEBI), Department of Legal Affairs and Intelligence agencies of the Government.

Whom does this Organization report to?

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

Economic Intelligence Council (EIC):

  • EIC was formed in 1990 and is the apex forum overseeing government agencies responsible for economic intelligence and combating economic offences in India.
  • EIC is responsible for coordination, strategy and information-sharing amongst the government agencies responsible for intelligence and control of economic offences such as smuggling, money laundering tax evasion and fraud. The Council also advises the Finance Minister and the Union Council of Ministers on laws regulating the financial sector and fighting economic crimes.
  • EIC is headed by the Union Finance Minister.

Source: www.fiuindia.gov.in, TH, IE