Financial Intelligence Unit
29-02-2024
10:55 AM
1 min read
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Overview:
India's Financial Intelligence Unit (FIU) is keeping a close eye on large cash deposits and withdrawals from cooperative banks ahead of the 2024 Lok Sabha elections.
About Financial Intelligence Unit
- It was set by the Government of India in November 2004.
- It is the central national agency responsible for receiving, processing, analyzing and disseminating information relating to suspect financial transactions.
- It 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 financing of terrorism.
- It is an independent body reporting directly to the Economic Intelligence Council (EIC) headed by the union Finance Minister.
- Functions:
- Collection of Information: Act as the central reception point for receiving Cash Transaction reports (CTRs),Non-Profit Organisation Transaction Report(NTRs), Cross Border Wire Transfer Reports (CBWTRs), Reports on Purchase or Sale of Immovable Property (IPRs) and Suspicious Transaction Reports (STRs) from various reporting entities.
- Analysis of Information: Analyze received information in order to uncover patterns of transactions suggesting suspicion of money laundering and related crimes.
- Sharing of Information: Share information with national intelligence/law enforcement agencies, national regulatory authorities and foreign Financial Intelligence Units.
- Act as Central Repository: Establish and maintain national data base on the basis of reports received from reporting entities.
- Coordination: Coordinate and strengthen collection and sharing of financial intelligence through an effective national, regional and global network to combat money laundering and related crimes.
- Research and Analysis: Monitor and identify strategic key areas on money laundering trends, typologies and developments.
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Q1) What is the mandate of the Economic Intelligence Council?
The mandate of EIC is to combat economic offences through intelligence gathering on issues relating to economic security, provide inter-agency coordination and deal with economic offences in an effective manner.
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