FIU-IND and RBI Sign MoU on AML and CFT
Why in the news
The Financial Intelligence Unit-India and the Reserve Bank agreed a formal framework to work together against illicit finance in the financial sector.
Key facts
- Each party appoints a nodal officer and an alternate nodal officer.
- They share financial intelligence and data from their databases.
- They jointly frame reporting procedures under the Prevention of Money Laundering (PML) Rules.
- Meetings take place every quarter.
| Area | What will be done |
|---|---|
| Capacity | Awareness, training and outreach; AML/CFT skill upgrade for RBI-regulated entities |
| Risk | Assessing ML/TF vulnerabilities in financial sub-sectors; circulating red flag indicators |
| Supervision | Joint monitoring of compliance under PMLA, PML Rules and RBI directions |
| Standards | Alignment with FATF recommendations and global norms |
Significance
- Builds the financial sector’s resilience against money laundering and terror financing.
- Reinforces India’s commitment to financial integrity.
Exam angle
- Parties: FIU-IND and RBI.
- Acronyms: AML/CFT, ML/TF, PMLA, FATF.