Key Features of the MoU
- Intelligence Sharing: Enables sharing of financial intelligence and database information between FIU-IND and SEBI
- Reporting Mechanisms: Establishes reporting mechanisms under the Prevention of Money-Laundering Rules for SEBI-regulated entities
- Capacity Building: Includes training and outreach programmes to strengthen AML/CFT capabilities among SEBI-regulated entities
- Risk Monitoring: Focus on assessment of money laundering and terror financing risks, identification of red flag indicators, and compliance monitoring
About FIU-IND
The Financial Intelligence Unit-India (FIU-IND) is the central national agency responsible for:
- Receiving, processing, analysing, and disseminating information relating to suspect financial transactions
- Coordinating efforts against money laundering and financing of terrorism
About SEBI
The Securities and Exchange Board of India (SEBI) is the statutory regulator of securities markets in India, established under the SEBI Act, 1992. Its objectives include:
- Protecting investor interests
- Ensuring market integrity
- Regulating securities market
Significance
- Strengthened Enforcement: Enhanced coordination between two crucial regulatory bodies
- Global Alignment: Alignment with international standards and Egmont Principles of Information Exchange
- Comprehensive Coverage: Addresses both money laundering and terrorist financing risks
- Market Integrity: Helps in early detection of financial crimes in capital markets
Related Legal Framework
- Prevention of Money-Laundering Act (PMLA), 2002: Primary legislation for money laundering control in India
- SEBI Act, 1992: Establishes SEBI as the regulator
- Egmont Principles: International standards for financial intelligence unit information exchange