FIU-IND, RBI Sign MoU to Strengthen Anti-Money Laundering Framework
The Reserve Bank of India (RBI) and the Financial Intelligence Unit-India (FIU-IND) have entered into a Memorandum of Understanding (MoU) to expand cooperation in combating terror financing and money laundering. Vivek Aggarwal, Director of FIU-IND, and R.L.K. Rao, RBI Executive Director (Department of Regulation), signed the MoU.
This strategic alliance is a big leap towards enhancing the implementation of the Prevention of Money Laundering Act (PMLA) and the related rules. The two institutions will under the deal jointly work on matters of mutual interest, such as sharing respective databases intelligence and information of relevance.
The MoU also places significance on capacity development through collaborative training and outreach programs to enhance Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) capacity within regulated entities. In addition, the RBI and FIU-IND will jointly evaluate money laundering and terror financing risks and weaknesses in different financial sub-sectors.
This collaborative structure is expected to increase regulatory supervision and boost the financial system's resistance against illegal financial transactions, further committing India to global AML/CFT standards.
