Sebi signs mutual cooperation pact with FIU-IND
06 May 2014
The Securities and Exchange Board of India (Sebi ) and the Financial Intelligence Unit, India (FIU-IND) have signed a memorandum of understanding (MoU) on mutual cooperation, as part of continued coordinated efforts in effective implementation of requirements of the Prevention of Money Laundering Act and the Rules framed thereunder.
Sebi whole time member RK Agarwal and FIU-IND director Praveen K Tiwari signed the agreement on 2 May.
According to the MoU, Sebi and FIU-IND will cooperate with each other in areas of mutual interest, including the sharing of intelligence and information available in their respective databases.
The two will together lay down procedure and manner in which the reporting entities report to FIU-IND under the PML Rules.
They will conduct outreach and training for reporting entities and cooperate in upgradation of AML/CFT skills in the reporting entities regulated by Sebi.
They will jointly assess anti-money laundering/combating financing of terrorism (AML/CFT) risks and vulnerabilities in the capital market sector.
The cooperation will also be extended to the identification of red flag indicators for suspicious transaction reports (STRs) in the capital market sector, supervising and monitoring the compliance of reporting entities with their obligations under PMLA and compliance with each other's obligations under the relevant international standards.
