In a significant move to strengthen India’s financial security framework, the Financial Intelligence Unit-India (FIU-IND) and the Reserve Bank of India (RBI) have signed a Memorandum of Understanding (MoU) aimed at enhancing coordination and information sharing for more effective compliance with the Prevention of Money Laundering Act (PMLA) and its associated rules.
The MoU was signed in New Delhi by Shri Vivek Aggarwal, Director, FIU-IND, and Shri R.L.K. Rao, Executive Director of the Department of Regulation, RBI. The collaboration reflects the continued efforts of both institutions to align regulatory compliance, supervision, and intelligence operations in combating money laundering and terrorism financing in the financial sector.
Strengthening AML/CFT Systems Across Financial Ecosystem
Under the MoU, both FIU-IND and RBI will designate nodal and alternate nodal officers to ensure continuous communication. The agreement will facilitate:
Sharing of intelligence and financial data from their respective databases.
Joint efforts in laying down streamlined procedures for reporting by regulated entities under the PMLA framework.
Organizing outreach, training, and capacity-building initiatives for entities regulated by RBI.
Assessment of sector-specific vulnerabilities and risks related to Money Laundering and Terror Financing (ML/TF).
Identification and dissemination of red flag indicators for detecting suspicious transactions.
This partnership will also support compliance with global AML/CFT standards and strengthen supervisory mechanisms within financial institutions regulated by RBI.
Also read: Uganda Embraces India’s UPI and Digital ID Model
Institutional Collaboration for Risk Mitigation
The MoU also outlines a plan for quarterly meetings between the two bodies to review progress, address emerging issues, and enhance regulatory synergy. Additionally, both institutions will work towards:
Aligning compliance frameworks with international benchmarks.
Supporting the use of data-driven insights to improve detection and mitigation strategies.
Conducting joint evaluations of reporting entity adherence to AML/CFT obligations.
Senior officials including Mr. Bedobani Chaudhuri, Additional Director, FIU-IND; Ms. Veena Srivastava, CGM, Department of Regulation, RBI; Mr. Avinash Kumar, Deputy Director, FIU-IND; and Mr. Sanjoy Ghosh, FSE, FIU-IND, were present during the signing.
This strategic agreement underlines India’s commitment to building robust safeguards within its financial ecosystem and enhancing its global position in the fight against financial crimes.
