Why in the news?

• The Department of Telecommunications (DoT) and the Financial Intelligence Unit-India (FIU-IND) signed a comprehensive Memorandum of Understanding (MoU) to prevent financial crimes.

Financial Intelligence Unit-India (FIU-IND)

• Set up: 2004 by the Government of India.
• Nature: Central national agency for financial intelligence.
• Reports to: Economic Intelligence Council (EIC), chaired by the Finance Minister.
• Objective: To counter money laundering, terror financing, and suspicious financial activities.
• Functions
  • Collection of Information: Act as the central reception point for receiving Cash Transaction reports (CTRs), Non-Profit Organisation Transaction Reports (NTRs), Cross Border Wire Transfer Reports (CBWTRs), Reports on the Purchase or Sale of Immovable Property (IPRs), and Suspicious Transaction Reports (STRs) from various reporting entities.
  • Analysis of Information: Analyze received information 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 a national database based on reports received from reporting entities.
  • Coordination: Coordinate and strengthen the 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.