New Delhi: Financial Intelligence Unit-India and Securities and Exchange Board of India have signed a Memorandum of Understanding (MoU) to strengthen efforts against money laundering and financial crimes.
The agreement was formalised by Amit Mohan Govil and Sandip Pradhan, marking a significant step in enhancing coordination between the two agencies.
Importantly, the FIU-India SEBI MoU aims to improve intelligence sharing and streamline cooperation in tackling financial irregularities. As a result, both institutions will be able to respond more effectively to emerging threats.
FIU-India SEBI MoU strengthens intelligence sharing
Under the agreement, both agencies will share relevant data and intelligence from their respective databases. In addition, the MoU outlines procedures for reporting by regulated entities under the Prevention of Money Laundering (PML) Rules.
Moreover, the collaboration will support information exchange with global counterparts through established international frameworks such as the Egmont Principles. This is expected to enhance cross-border cooperation in financial investigations.
The agencies also plan to conduct outreach and training programmes. These initiatives will help improve Anti-Money Laundering and Combating Financing of Terrorism (AML/CFT) capabilities among entities regulated by SEBI.
Focus on risk assessment and compliance monitoring
The partnership will also focus on assessing risks related to money laundering and terror financing across financial sectors. Furthermore, both bodies will identify and share red flag indicators to detect suspicious transactions.
At the same time, they will strengthen supervision and ensure compliance with provisions under the Prevention of Money Laundering Act and related rules.
Regular quarterly meetings will be held to review progress and address emerging challenges. Consequently, this structured engagement is expected to improve coordination and policy implementation.
FIU-IND, as the central agency for processing financial intelligence, plays a key role in analysing suspicious transactions. Meanwhile, SEBI oversees the securities market and ensures investor protection through regulatory mechanisms.
Overall, the FIU-India SEBI MoU reflects a coordinated approach to safeguarding India’s financial system. It also highlights the growing importance of inter-agency collaboration in tackling complex financial crimes.
