The MoU will facilitate coordinated efforts towards effective compliance with Prevention of Money Laundering Act and Rules framed thereunder

The Financial Intelligence Unit- India (FIU-IND) and the Reserve Bank of India (RBI) signed a Memorandum of Understanding (MoU) at New Delhi, today, as part of continued coordinated efforts in effective implementation of requirements of the Prevention of Money Laundering Act and Rules framed thereunder.

The MoU was signed by Shri Vivek Aggarwal, Director, FIU-IND and Shri R.L.K. Rao, Executive Director, Department of Regulation, Reserve Bank of India.

According to the MoU, FIU-IND and RBI will cooperate with each other in the areas of mutual interest including the following:

1. Each Party to the MoU will appoint a nodal officer and an alternate nodal officer to interact with the other party.
2. Sharing of relevant intelligence and information, available in their respective databases.
3. Laying down procedure and manner in which the regulated entities/ reporting entities report to FIU-IND under the PML Rules.
4. Conducting outreach and training for regulated entities /reporting entities.
5. Upgradation of Anti-Money Laundering/Combating Financing of Terrorism (AML/CFT) skills in the regulated entities / reporting entities regulated by RBI.
6. Assessment of Money Laundering/Terror Financing (ML/TF) risks and vulnerabilities in the relevant financial sub-sectors.
7. Identification of red flag indicators for Suspicious Transactions.
8. Supervising and monitoring the compliance of reporting entities regulated by RBI with their obligations under PMLA, PML Rules and RBI instructions.
9. Compliance with the relevant international standards.
10. Conduct of quarterly meeting to discuss and share information on issues of mutual interest.

Mr. Bedobani Chaudhuri, Additional Director, FIU-IND, Ms. Veena Srivastava, Chief General Manager, Department of Regulation, RBI; Mr. Avinash Kumar, Deputy Director, FIU-IND and Mr. Sanjoy Ghosh, FSE, FIU-IND, were also present on the occasion.

AML/CFT coordination strengthened to enable intelligence sharing and joint supervision of reporting entities for PMLA compliance. A Memorandum of Understanding between the Financial Intelligence Unit-India and the Reserve Bank of India establishes institutional cooperation to implement the Prevention of Money Laundering Act and Rules, including nodal officer appointments, intelligence and database sharing, procedures for reporting by regulated entities to the FIU, quarterly information sharing meetings, and coordinated supervision, training and AML/CFT risk assessment for reporting entities regulated by RBI.