FIU IND Syllabus GS Paper 3 – Economy)

Context: Recently, the Financial Intelligence Unit India (FIU IND) issued show-cause notices to 9 offshore virtual digital asset service providers (VDA SPs), including Binance, Kucoin, Huobi, Bitfinex and MEXC Global, among others.

Financial Intelligence Unit India (FIU IND)

• About: As an independent body, FIU-IND reports directly to the Economic Intelligence Council (EIC), led by the Finance Minister. 
• Established by: In 2004
• Objective: Serves as the central national agency responsible for receiving, processing, analyzing, and disseminating information related to suspicious financial transactions.
• Coordination: FIU-IND works to coordinate and strengthen the collection and sharing of financial intelligence through an effective national, regional, and global network, aiming to combat money laundering and related crimes.
• Functions:

oIt acts as the central reception point for receiving various reports, including Cash Transaction Reports (CTRs), Non-Profit Organisation Transaction Reports (NTRs), Cross Border Wire Transfer Reports (CBWTRs), Reports on Purchase or Sale of Immovable Property (IPRs), and Suspicious Transaction Reports (STRs) from different reporting entities.

oThe unit analyzes the received information to uncover transaction patterns that may indicate suspicion of money laundering and related crimes.

oFIU-IND collaborates by sharing information with national intelligence/law enforcement agencies, national regulatory authorities, and foreign Financial Intelligence Units.