Facts for Prelims (FFP)
Source: ET
Context: India’s financial intelligence unit (FIU) issues new alert indicators under PMLA for various sectors to combat money laundering and terrorism financing.
- These guidelines, part of the anti-money laundering (AML) and counter-terrorism financing regime, involve collaborations with regulatory bodies.
The New Indicators are:
| Sector | New Alert Indicators |
| Capital Markets | Mis-utilization of client funds by stockbrokers |
| Depositories | Identification of suspicious off-market transfers |
| Insurance Sector | Alerts for fraud cases experienced by insurance firms analyzed from the AML/CFT perspective |
| Online Payment Gateways | Speed of transactions leading to AML/CFT risks |
| VDA or Cryptocurrency Service Providers | Directions to register with FIU to carry out “enhanced due diligence to implementation of travel rule.” |
| Travel Rule, extended to crypto companies in 2019 by FATF, requires businesses to collect and share the personal data of participants in a transaction. | |
| Credit Rating Agencies | Timely reporting of STRs to FIU. “STR” stands for “Suspicious Transaction Report.” |
| Identification of serious corporate frauds with AML/CFT implications | |
| Debenture Trustees | Periodic reports from issuers of debentures. Taking appropriate action in the interest of debenture holders upon noticing breaches of trust deed or law |
| Real Estate Agents (DNFBP) | Guidelines for STR reporting under PMLA |
About Financial Intelligence Unit (FIU) India:
FIU-IND, established in 2004, operates as an independent body reporting directly to the Economic Intelligence Council led by the Finance Minister. Its functions include receiving, analyzing, and disseminating information on suspicious financial transactions. It coordinates efforts with national and international agencies to combat money laundering and terror financing. Additionally, India employs specialized agencies like the Enforcement Directorate and Central Bureau of Investigation and participates in international cooperation through memberships in organizations like FATF and the Eurasian Group.
