FIU-IND and IRDAI Sign MoU for Enhanced AML/CFT Cooperation

The Financial Intelligence Unit-India (FIU-IND) and the Insurance Regulatory and Development Authority of India (IRDAI) signed a Memorandum of Understanding (MoU) as part of continued coordinated efforts in effective implementation of requirements of the Prevention of Money Laundering Act and Rules framed thereunder, in New Delhi.

According to the MoU, FIU-IND and IRDAI will collaborate on various areas of mutual interest. Both parties will appoint a nodal officer and an alternate nodal officer to facilitate communication and coordination. They will share relevant intelligence and information available in their respective databases to enhance their joint efforts. The MoU also outlines the procedure and manner in which regulated entities and reporting entities report to FIU-IND under the PML Rules.

Additionally, both organizations will conduct outreach programs and training for these entities, focusing on upgrading their Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT) skills. An important aspect of the cooperation includes assessing AML/CFT risks and vulnerabilities in the insurance sector, while identifying red flag indicators for Suspicious Transaction Reports (STRs) within the industry. FIU-IND and IRDAI will also work together to supervise and monitor the compliance of regulated entities with their obligations under the Prevention of Money Laundering Act (PMLA), PML Rules, and IRDAI Guidelines.

The MoU emphasizes adherence to international standards and includes the conduct of quarterly meetings to discuss the progress of these initiatives, typologies and trends in AML/CFT crimes, as well as cases where sanctions have been imposed.