FIU-IND and RBI sign MoU for enhanced coordination and information exchange

Current Context: On April 17, 2025, the Financial Intelligence Unit-India (FIU-IND) and the Reserve Bank of India (RBI) signed a Memorandum of Understanding (MoU) in New Delhi.

• This MoU aims to enhance coordination and information exchange for effective compliance with the Prevention of Money Laundering Act (PMLA) and related rules.

Key Highlights:

• Collaboration Areas: Sharing intelligence, identifying red flag indicators for suspicious transactions, and assessing money laundering/terror financing risks.
• Capacity Building: Conducting outreach and training programs to upgrade Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT) skills.
• Compliance Monitoring: Supervising reporting entities regulated by RBI to ensure adherence to PMLA and international standards.
• Signatories: The MoU was signed by Vivek Aggarwal, Director of FIU-IND, and R.L.K. Rao, Executive Director, RBI.

Question:

Q.1 What is the main objective of the MoU signed between FIU-IND and RBI on 17th April 2025?
a) To promote digital banking in rural areas
b) To enhance coordination and information exchange for effective compliance with PMLA
c) To regulate NBFC operations in India
d) To monitor inflationary trends in the banking sector

Answer: b) This MoU aims to enhance coordination and information exchange for effective compliance with the Prevention of Money Laundering Act (PMLA) and related rules.