Financial Intelligence Unit

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India's Financial Intelligence Unit (FIU) is keeping a close eye on large cash deposits and withdrawals from cooperative banks ahead of the 2024 Lok Sabha elections.

About Financial Intelligence Unit

  • It was set by the Government of India in November 2004.
  • It is the central national agency responsible for receiving, processing, analyzing and disseminating information relating to suspect financial transactions.
  • It is also responsible for coordinating and strengthening efforts of national and international intelligence, investigation and enforcement agencies in pursuing the global efforts against money laundering and financing of terrorism.
  • It is an independent body reporting directly to the Economic Intelligence Council (EIC) headed by the union Finance Minister.
  • Functions:
    • Collection of Information: Act as the central reception point for receiving Cash Transaction reports (CTRs),Non-Profit Organisation Transaction Report(NTRs), Cross Border Wire Transfer Reports (CBWTRs), Reports on Purchase or Sale of Immovable Property (IPRs) and Suspicious Transaction Reports (STRs) from various reporting entities.
    • Analysis of Information: Analyze received information in order to uncover patterns of transactions suggesting suspicion of money laundering and related crimes.
    • Sharing of Information: Share information with national intelligence/law enforcement agencies, national regulatory authorities and foreign Financial Intelligence Units.
    • Act as Central Repository: Establish and maintain national data base on the basis of reports received from reporting entities.
    • Coordination: Coordinate and strengthen collection and sharing of financial intelligence through an effective national, regional and global network to combat money laundering and related crimes.
    • Research and Analysis: Monitor and identify strategic key areas on money laundering trends, typologies and developments.

Q1) What is the mandate of the Economic Intelligence Council?

The mandate of EIC is to combat economic offences through intelligence gathering on issues relating to economic security, provide inter-agency coordination and deal with economic offences in an effective manner.

Source: RBI tweaks norms related to Regulatory Sandbox scheme