Financial Intelligence Unit India (FIU)
- December 5, 2023
- Posted by: OptimizeIAS Team
- Category: DPN Topics
Financial Intelligence Unit India (FIU)
Subject : Economy
Section: Monetary Policy
Context: The Ministry of Finance has clarified that offshore cryptocurrency exchanges serving the Indian market have to be registered with the Financial Intelligence Unit India (FIU) as reporting entities
As many as 28 Virtual Digital Assets (VDA) service providers, including WazirX, Coin DCX and Coinswitch, have registered themselves with the Financial Intelligence Unit-India (FIU-IND)
The Finance Ministry in March had said entities dealing in VDAs, crypto exchanges and intermediaries would be considered “reporting entity” under the Prevention of money laundering Act (PMLA). Accordingly, crypto exchanges and intermediaries dealing with VDAs were required to perform KYC of their clients and users of the platform.
Financial Intelligence Unit – India (FIU-IND)
- It was set by the Government of India on 18th November 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 financing of terrorism.
- FIU-IND is an independent body reporting directly to the Economic Intelligence Council (EIC) headed by the Finance Minister.
- FIU-IND is a multi disciplinary body with a sanctioned strength of 75 personnel–from different organizations namely 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.
Organisational Structure:
Main Functions:
- 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.
Daily Mapping:
- Sindhudurg fort
- KG Basin
Personalities:
Kanhoji Angre, Mayaji Naik Bhatkar and Hiroji Indulka