A formal Memorandum of Understanding (MOU) was signed today between the Ministry of Corporate Affairs (MCA) and Financial Intelligence Unit-India, Ministry of Finance for data exchange between the two organizations. The MoU was signed by Shri Manoj Pandey, Joint Secretary, MCA and Shri Manoj Kaushik, Additional Director FIU-India in the presence of Secretary, MCA, and Director (FIU-India).

The MoU is in line with the vision of MCA and FIU-INDIA to harness data capabilities to ensure effective enforcement. The data sharing arrangement gains significance in light of development of MCA21 Version 3 and FINNET 2.0 which will utilize state of the art technology for improving their regulatory and facilitating functions. MCA is in process of rollout of MCA21 Version 3 in phases. FIU-India is in the process of upgrading existing FINnet 1.0 to FINnet 2.0.

FINnet 2.0 project is of national importance and assists FIU-IND by leveraging technology to collect, analyze and disseminate financial information for combating money laundering and related crimes with many improved and additional features to inculcate the latest technologies like AI/ML and advanced data analytics to streamline the IT processes with improved strategic data analysis capabilities and other aspects.

In the picture (from right to left): Shri Manoj Pandey, Joint Secretary, MCA, Shri Rajesh Verma, Secretary, MCA, Shri. Pankaj Kumar Mishra, Director, FIU – India and Shri Manoj Kaushik, Additional Director FIU-India.

The MoU will facilitate the sharing of data and information between MCA and FIU-INDIA on an automatic and regular basis. It will enable sharing of specific information such as information relating to suspicious transactions, KYC related details and consolidated financial statements of companies registered in the country. The MoU will ensure that both MCA and FIU-INDIA have seamless linkage for regulatory purposes. In addition to regular exchange of data, MCA and FIU-INDIA will also exchange with each other, on request, any information available in their respective databases, for the purpose of carrying out scrutiny, inspection, investigation and prosecution.

Technology and data will play a critical role going forward in fulfilling the Government’s vision of minimum government, maximum governance and both MCA and FIU-INDIA are well placed to fulfill this vision.

The MoU comes into force from the date it was signed and is an ongoing initiative of MCA and FIU-INDIA, both of which are already collaborating through various existing mechanisms. A Data Exchange Steering Group also has been constituted for the initiative, which will meet periodically to review the data exchange status and take steps to further improve the effectiveness of the data sharing mechanism.

The MoU marks the beginning of a new era of cooperation and synergy between the two organisations.

Data sharing agreement enables automated exchange of corporate and suspicious transaction data for regulatory scrutiny. A Memorandum of Understanding establishes an ongoing framework for automated, regular exchange of corporate and financial information, including suspicious transaction reports, KYC details and consolidated financial statements, and permits on request exchanges to support scrutiny, inspection, investigation and prosecution; a Data Exchange Steering Group will periodically review implementation and the initiative will interface with planned technical upgrades to enhance analytics and governance.