What is an FIU?
Finance Intelligence Units (FIUs) are specialized government agencies created to act as an interface between financial sector and law enforcement agencies for collecting, analyzing and disseminating information, particularly about suspicious financial transactions.
Definition of FIU
--The definition of an FIU has been formalized by the Egmont Group of FIUs as –
“A central, national agency responsible for receiving, (and as permitted, requesting), analysing and disseminating to the competing authorities, disclosures of financial information:
i) Concerning suspected proceeds of crime and potential financing of terrorism, or
ii) Required by national legislation or regulation in order to combat money laundering and terrorism financing.”
History:
--Financial Intelligence Unit – India (FIU-IND) was set by the Government of India vide O.M. dated 18th November 2004 as the central national agency responsible for receiving, processing, analyzing and disseminating information relating to suspect financial transactions.
--Unlike ED: Enforcement Directorate they only have one office in India at New Delhi.
FIU IND SET UP:
--FIU-IND is an independent body reporting directly to the Economic Intelligence Council (EIC) headed by the Finance Minister.
--For administrative purposes, FIU-IND is under the control of the Department of Revenue, Ministry of Finance.
FIU-IND 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 related crimes.
THREE POINT STRATEGIC OBJECTIVES OF FIU IND:
ORGANIZATION STRUCTURE:
Finance Intelligence Units (FIUs) are specialized government agencies created to act as an interface between financial sector and law enforcement agencies for collecting, analyzing and disseminating information, particularly about suspicious financial transactions.
Definition of FIU
--The definition of an FIU has been formalized by the Egmont Group of FIUs as –
“A central, national agency responsible for receiving, (and as permitted, requesting), analysing and disseminating to the competing authorities, disclosures of financial information:
i) Concerning suspected proceeds of crime and potential financing of terrorism, or
ii) Required by national legislation or regulation in order to combat money laundering and terrorism financing.”
History:
--Financial Intelligence Unit – India (FIU-IND) was set by the Government of India vide O.M. dated 18th November 2004 as the central national agency responsible for receiving, processing, analyzing and disseminating information relating to suspect financial transactions.
--Unlike ED: Enforcement Directorate they only have one office in India at New Delhi.
FIU IND SET UP:
--FIU-IND is an independent body reporting directly to the Economic Intelligence Council (EIC) headed by the Finance Minister.
--For administrative purposes, FIU-IND is under the control of the Department of Revenue, Ministry of Finance.
FIU-IND 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 related crimes.
THREE POINT STRATEGIC OBJECTIVES OF FIU IND:
- --Combating money laundering, financing of terrorism and other economic offences;
- --Deterring money laundering and financing of terrorism;
- --Building and strengthening organizational capacity.
ORGANIZATION STRUCTURE:
Some insights:
The Director reports to the Finance Minister along with the Directorate of Enforcement. However, the Additional Directors under him carry out the functions of FIU IND.
As far as I know, One Additional Director is for RE: State Bank of India and its subsidiaries, one Additional Director for all Nationalized Banks, one Additional Director for all private sector and foreign banks, one Additional Director for all other RE's and one Additional Director for Co-op Banking sector (Considering the volume I suppose)
The Deputy Director is the FINNET Gateway Administrator.
All these Directors are from different fields and bring with them wide experience of administration and specialized skill sets.
POWERS OF DIRECTOR FIU IND:
--Section 13 of the Prevention of Money Laundering Act, 2002 confers following powers on the Director to ensure compliance.
(1)The Director may, either of his own motion or on an application made by any authority, officer or person, 1[make such inquiry or cause such inquiry to be made, as he thinks fit to be necessary, with regard to the obligations of the reporting entity, under this Chapter].
(Note: Director, FIU IND had exercised this power post FINNET Gateway launch, to check the compliance of banks in filing the returns online)
--3[(2) If the Director, in the course of any inquiry, finds that a reporting entity or its designated director on the Board or any of its employees has failed to comply with the obligations under this Chapter, then, without prejudice to any other action that may be taken under any other provision of this Act, he may--
(a) issue a warning in writing; or
(b) direct such reporting entity or its designated director on the Board or any of its employees, to comply with specific instructions; or
(c) direct such reporting entity or its designated director on the Board or any of its employees, to send reports at such interval as may be prescribed on the measures it is taking; or
(d) by an order, impose a monetary penalty on such reporting entity or its designated director on the Board or any of its employees, which shall not be less than ten thousand rupees but may extend to one lakh rupees for each failure.]
CHANGES POST PMLA 2012 w.e.f 15.03.2015
--Director, FIU-IND is proposed to be empowered by insertion of a new Section 12A in the PMLA so that he may call for records of transactions or any additional information that may be required for the purposes of the PMLA and also the power to make inquiries for non-compliance of reporting entities to the obligations cast upon them.
NEW INITIATIVES FIU IND:
--Project FINNET Gateway has already been rolled out, RE’s are now required to submit the returns online.
--It is proposed that, Project FINnet should harness data mining and business intelligence tools for identifying actionable cases from the financial data received from the reporting entities”.
--Project FINNET Gateway has already been rolled out, RE’s are now required to submit the returns online.
--It is proposed that, Project FINnet should harness data mining and business intelligence tools for identifying actionable cases from the financial data received from the reporting entities”.
--Department of Posts, Commodity Exchanges and brokers, Stock Exchanges, Entities registered with PFRDA, entities who can be included when notified by the Government -Real estate agents, sub-registrars (registering property), dealers in precious metals/stones, high value goods and safe deposit keepers.
--FIU IND on its website have posted Beta.xls formats for easy reporting of returns along with the required schema for the same.
http://www.fiuindia.gov.in/
--The utilities as well as resources for filing the returns are available on
https://finnet.gov.in/
Value additions by FIU IND
Enhanced security on the Gateway by providing OTP: One time password to PO during log in on their mobile.--
Dedicated HELPDESK through which RE’s can solve their queries.
Yearly training programmes like “Train the Trainers” for Officers of RE’s.
Distribution of relevant material/alerts/tips from regulatory authorities/FIU IND in the mail box of PO
The contact details of FIU IND are:
Director, FIU-IND
Financial Intelligence Unit - India
6th Floor, Hotel Samrat
Kautilya Marg, Chanakyapuri
New Delhi -110021, India
E-mail: [email protected]
# 011-24109792/93
The Director reports to the Finance Minister along with the Directorate of Enforcement. However, the Additional Directors under him carry out the functions of FIU IND.
As far as I know, One Additional Director is for RE: State Bank of India and its subsidiaries, one Additional Director for all Nationalized Banks, one Additional Director for all private sector and foreign banks, one Additional Director for all other RE's and one Additional Director for Co-op Banking sector (Considering the volume I suppose)
The Deputy Director is the FINNET Gateway Administrator.
All these Directors are from different fields and bring with them wide experience of administration and specialized skill sets.
POWERS OF DIRECTOR FIU IND:
--Section 13 of the Prevention of Money Laundering Act, 2002 confers following powers on the Director to ensure compliance.
(1)The Director may, either of his own motion or on an application made by any authority, officer or person, 1[make such inquiry or cause such inquiry to be made, as he thinks fit to be necessary, with regard to the obligations of the reporting entity, under this Chapter].
(Note: Director, FIU IND had exercised this power post FINNET Gateway launch, to check the compliance of banks in filing the returns online)
--3[(2) If the Director, in the course of any inquiry, finds that a reporting entity or its designated director on the Board or any of its employees has failed to comply with the obligations under this Chapter, then, without prejudice to any other action that may be taken under any other provision of this Act, he may--
(a) issue a warning in writing; or
(b) direct such reporting entity or its designated director on the Board or any of its employees, to comply with specific instructions; or
(c) direct such reporting entity or its designated director on the Board or any of its employees, to send reports at such interval as may be prescribed on the measures it is taking; or
(d) by an order, impose a monetary penalty on such reporting entity or its designated director on the Board or any of its employees, which shall not be less than ten thousand rupees but may extend to one lakh rupees for each failure.]
CHANGES POST PMLA 2012 w.e.f 15.03.2015
--Director, FIU-IND is proposed to be empowered by insertion of a new Section 12A in the PMLA so that he may call for records of transactions or any additional information that may be required for the purposes of the PMLA and also the power to make inquiries for non-compliance of reporting entities to the obligations cast upon them.
NEW INITIATIVES FIU IND:
--Project FINNET Gateway has already been rolled out, RE’s are now required to submit the returns online.
--It is proposed that, Project FINnet should harness data mining and business intelligence tools for identifying actionable cases from the financial data received from the reporting entities”.
--Project FINNET Gateway has already been rolled out, RE’s are now required to submit the returns online.
--It is proposed that, Project FINnet should harness data mining and business intelligence tools for identifying actionable cases from the financial data received from the reporting entities”.
--Department of Posts, Commodity Exchanges and brokers, Stock Exchanges, Entities registered with PFRDA, entities who can be included when notified by the Government -Real estate agents, sub-registrars (registering property), dealers in precious metals/stones, high value goods and safe deposit keepers.
--FIU IND on its website have posted Beta.xls formats for easy reporting of returns along with the required schema for the same.
http://www.fiuindia.gov.in/
--The utilities as well as resources for filing the returns are available on
https://finnet.gov.in/
Value additions by FIU IND
Enhanced security on the Gateway by providing OTP: One time password to PO during log in on their mobile.--
Dedicated HELPDESK through which RE’s can solve their queries.
Yearly training programmes like “Train the Trainers” for Officers of RE’s.
Distribution of relevant material/alerts/tips from regulatory authorities/FIU IND in the mail box of PO
The contact details of FIU IND are:
Director, FIU-IND
Financial Intelligence Unit - India
6th Floor, Hotel Samrat
Kautilya Marg, Chanakyapuri
New Delhi -110021, India
E-mail: [email protected]
# 011-24109792/93