Financial Crime World

Financial Intelligence Unit of India Takes Centre Stage in Fight Against Money Laundering

The Financial Intelligence Unit-India (FIU-IND) has been a crucial player in the fight against money laundering and related crimes since its inception in 2004. As an agency under the Department of Revenue, Government of India, FIU-IND is responsible for collecting financial intelligence about offences under the Prevention of Money Laundering Act, 2002.

Functions

FIU-IND receives and analyzes reports from reporting entities, including:

  • Cash transaction reports
  • Non-profit organization transaction reports
  • Cross-border wire transfer reports
  • Suspicious transaction reports

The agency maintains a national database of all received reports and shares information with:

  • National intelligence/law enforcement agencies
  • National regulatory authorities
  • Foreign financial intelligence units

Enforcement

FIU-IND has been actively monitoring trends, typologies, and developments in money laundering and related crimes. The agency has taken punitive action against violators of the PMLA and imposed a fine of Rs 96 lakh on PayPal for violating anti-money laundering laws.

Leadership

Headed by Director Vivek Aggarwal, IAS, FIU-IND works closely with national and international agencies to share intelligence and coordinate efforts. The agency’s success is reflected in its ability to uncover patterns of transactions suggesting suspicion of money laundering and related crimes.

Milestones

  • Pankaj Kumar Mishra, IRS-IT (1989), has been the Director of FIU-IND since May 2016 and has played a crucial role in shaping the agency’s strategy and operations.
  • With his promotion to Additional Secretary in May 2020, FIU-IND is well-equipped to tackle the challenges of financial intelligence gathering and analysis.

Conclusion

As India continues to grapple with money laundering and related crimes, FIU-IND remains an essential component in the country’s efforts to combat these threats. The agency’s tireless efforts have been instrumental in receiving and analyzing reports, sharing information, and taking punitive action against violators. With its leadership and capabilities, FIU-IND is well-positioned to continue playing a crucial role in the fight against money laundering.