Sebi signs MoU with FIU to check money laundering

As part of its' efforts in effective implementation of anti-money laundering rules, Sebi has signed an MoU with Financial Intelligence Unit (FIU), which is tasked with looking into suspicious financial transactions.

“Sebi and FIU signed a Memorandum of Understanding on Mutual Cooperation on May 2...as part of continued coordinated efforts in effective implementation of requirements of the Prevention of Money Laundering Act and the Rules framed thereunder,” the regulator said in statement on Monday.

The regulator and FIU would cooperate with each other in areas of mutual interest including the sharing of intelligence and information available in their respective databases. The MoU would enable in laying down procedure and manner in which the 'reporting entities' report to FIU under the prevention of money-laundering rules.

It would also help in the assessment of anti-money laundering or combating financing of terrorism risks and vulnerabilities in the capital market sector as well as in identifying "red flag indicators for suspicious transaction reports (STRs) in the capital market".

The MoU, was signed at the regulator's office in New Delhi, by Sebi Whole Time Member R K Agarwal and FIU Director Praveen K Tiwari.

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