The Financial Intelligence Unit - India (FIU-IND) is the central agency in India responsible for receiving/collecting, analysing, and disseminating information relating to suspicious financial transactions. It was set up in 2004 as part of the government's efforts to combat money laundering and terrorist financing activities in the country.

FIU-IND receives information from various sources, including banks, financial institutions, and regulatory authorities, and analyses it to detect any suspicious financial transactions that may be linked to money laundering, terrorism financing, or other illegal activities. It also shares this information with law enforcement agencies, such as the police and the Income Tax Department, to initiate investigations and take appropriate action.

FIU-IND operates under the Ministry of Finance, and is a member of the Egmont Group, an international network of financial intelligence units that work together to combat money laundering and terrorist financing.

The top five authority types from which FIUs can collect information are:

1. Financial Institutions
2. Law Enforcement Agencies (Police Departments, Intelligence Agencies, other Regulatory Authorities, etc.)
3. Government Agencies (Tax Authorities, Customs Authorities, Immigration Authorities, etc.)
4. International Organisations (like Interpol, Europol, FATF, etc.)
5. Public Sources (like Media Reports, Social Media, etc.)

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FIU-IND collects information from various sources to identify suspicious financial transactions. Some of the primary sources of information include:

1. Financial Institutions: FIU-IND receives reports of suspicious transactions from banks, non-banking financial companies, and other financial institutions. These institutions are required to report any transactions that they suspect to be related to money laundering or terrorism financing.
2. Regulatory Authorities: FIU-IND receives information from various regulatory authorities, such as the Securities and Exchange Board of India (SEBI), Reserve Bank of India (RBI), and Insurance Regulatory and Development Authority (IRDAI).
3. Law Enforcement Agencies: FIU-IND also receives information from law enforcement agencies, such as the police and the Income Tax Department, who may have come across suspicious financial transactions during their investigations.
4. Public: FIU-IND has a dedicated portal called the Suspicious Transaction Reporting (STR) web portal where members of the public can report any suspicious financial transactions they come across.
5. Once FIU-IND receives the information, it uses various analytical tools and techniques to identify any suspicious patterns or trends. If a transaction is found to be suspicious, FIU-IND shares the information with the appropriate law enforcement agencies to take further action.

FIU-IND is the nodal agency for receiving the following reports from various reporting entities.

Cash Transaction Reports (CTRs)

Cash Transaction Reports (CTRs) are reports that financial institutions, including banks and non-banking financial companies, are required to file with the Financial Intelligence Unit - India (FIU-IND) for cash transactions exceeding a certain threshold amount.

As per the guidelines issued by the Reserve Bank of India (RBI), financial institutions are required to file CTRs for cash transactions exceeding Rs. 10 lakh (or its equivalent in foreign currency) in a single day for an individual or entity. For transactions related to real estate, CTRs must be filed for transactions exceeding Rs. 30 lakh.

The purpose of CTRs is to help FIU-IND detect and prevent money laundering, terrorism financing, and other illegal activities. The information in CTRs includes the details of the individual or entity making the cash transaction, the amount of cash involved, and the purpose of the transaction.

Financial institutions are required to file CTRs within 15 days of the transaction, and failure to do so can result in penalties and other legal action. CTRs are a critical tool in the fight against financial crimes, and they help FIU-IND to track the movement of large amounts of cash and identify any suspicious transactions that may be linked to illegal activities.

Non-Profit Organisation Transaction Reports (NTRs)

Non-Profit Organization Transaction Reports (NTRs) are reports that financial institutions, including banks and non-banking financial companies, are required to file with the Financial Intelligence Unit - India (FIU-IND) for transactions involving non-profit organizations (NPOs).

As per the guidelines issued by the Reserve Bank of India (RBI), financial institutions are required to file NTRs for transactions exceeding Rs. 10 lakh (or its equivalent in foreign currency) in a single day for NPOs. The purpose of NTRs is to help FIU-IND detect and prevent money laundering, terrorism financing, and other illegal activities that may be carried out through NPOs.

The information in NTRs includes the details of the NPOs, the amount of the transaction, and the purpose of the transaction. The purpose of the transaction is particularly important because it helps FIU-IND to identify any transactions that may be linked to illegal activities.

Financial institutions are required to file NTRs within 15 days of the transaction, and failure to do so can result in penalties and other legal action. NTRs are a critical tool in the fight against financial crimes, and they help FIU-IND to track the movement of funds and identify any suspicious transactions that may be linked to NPOs.

Cross Border Wire Transfer Reports (CBWTRs)

Cross Border Wire Transfer Reports (CBWTRs) are reports that financial institutions, including banks and non-banking financial companies, are required to file with the Financial Intelligence Unit - India (FIU-IND) for cross-border wire transfers exceeding a certain threshold amount.

As per the guidelines issued by the Reserve Bank of India (RBI), financial institutions are required to file CBWTRs for cross-border wire transfers exceeding Rs. 5 lakh (or its equivalent in foreign currency) in a single transaction. The purpose of CBWTRs is to help FIU-IND detect and prevent money laundering, terrorism financing, and other illegal activities that may be carried out through cross-border wire transfers.

The information in CBWTRs includes the details of the parties involved in the transaction, the amount of the transaction, and the purpose of the transaction. The purpose of the transaction is particularly important because it helps FIU-IND to identify any transactions that may be linked to illegal activities.

Financial institutions are required to file CBWTRs within 15 days of the transaction, and failure to do so can result in penalties and other legal action. CBWTRs are a critical tool in the fight against financial crimes, and they help FIU-IND to track the movement of funds across borders and identify any suspicious transactions that may be linked to illegal activities.

Counterfeit Currency Reports (CCRs)

Counterfeit currency is one of the many financial crimes that the FIU-IND monitors and investigates. Individuals and businesses can report suspected cases of counterfeit currency to the FIU-IND through their website, email, or phone.

As per PMLA rules, Reporting Entities (REs) are required to report all cash transactions, where forged or counterfeit currency notes or bank notes have been used as genuine or where any forgery of a valuable security or a document has taken place.

If someone has received or come across a counterfeit currency note, that person should take immediate action by reporting it to the nearest police station or bank. It is illegal to use or possess counterfeit currency, and failure to report it can lead to legal consequences.

Suspicious Transaction Reports (STRs)

Suspicious Transaction Reports (STRs) are reports that financial institutions, including banks and non-banking financial companies, are required to file with the Financial Intelligence Unit - India (FIU-IND) for transactions that they suspect may involve money laundering, terrorism financing, or other illegal activities.

As per the guidelines issued by the Reserve Bank of India (RBI), financial institutions are required to file STRs whenever they detect a transaction that they suspect may be suspicious in nature. These suspicious transactions can include unusual transactions, transactions that are inconsistent with a customer's known financial profile, or transactions that have no apparent economic or lawful purpose.

The information in STRs includes the details of the parties involved in the transaction, the amount of the transaction, and the reasons why the financial institution believes the transaction may be suspicious. Financial institutions are required to file STRs within seven days of the transaction, and failure to do so can result in penalties and other legal action.

STRs are a critical tool in the fight against financial crimes, and they help FIU-IND to identify suspicious transactions that may be linked to money laundering, terrorism financing, or other illegal activities. Once an STR is filed, FIU-IND may conduct further investigation to determine whether the transaction is indeed suspicious in nature, and may take appropriate action if necessary to prevent financial crimes.

The main functions of the Financial Intelligence Unit - India (FIU-IND) are:

• Collection, analysis and dissemination of financial intelligence

  FIU-IND is responsible for collecting, analysing, and disseminating financial intelligence related to money laundering, terrorism financing, and other financial crimes. It receives information from various sources, including financial institutions, law enforcement agencies, and other government agencies.

• Developing policies and procedures for combating financial crimes

  FIU-IND is responsible for developing policies and procedures for combating financial crimes, including money laundering, terrorism financing, and other financial crimes. It issues guidelines and circulars to financial institutions on a regular basis to ensure compliance with anti-money laundering and counter-terrorism financing laws and regulations.

• Coordinating with other law enforcement agencies

  FIU-IND coordinates with other law enforcement agencies, including police departments, customs and revenue authorities, and intelligence agencies, to combat financial crimes. It shares financial intelligence with these agencies and provides assistance in their investigations.

• Monitoring compliance with anti-money laundering laws and regulations

  FIU-IND monitors compliance with anti-money laundering laws and regulations by financial institutions. It conducts inspections and audits of financial institutions to ensure compliance with these laws and regulations.

• Conducting research and analysis

  FIU-IND conducts research and analysis on money laundering, terrorism financing, and other financial crimes. It publishes reports and studies on these issues and provides training and capacity building to financial institutions, law enforcement agencies, and other stakeholders.

• International cooperation

  FIU-IND cooperates with other financial intelligence units and law enforcement agencies in other countries to combat financial crimes. It is a member of the Egmont Group, an international network of financial intelligence units, and works closely with other member units to share financial intelligence and combat financial crimes.

India's Financial Intelligence Unit (FIU) is proactively adapting to the rapidly evolving landscape of financial crimes. They use latest tools, technologies, and strategies to detect and prevent money laundering, terrorist financing, and other financial crimes in India. Project FINnet 2.0 of FUI IND envisions to streamline and redefine the process of collection, processing, and dissemination of data for the purpose of effectively generating meaningful intelligence to curb money laundering and terrorist financing activities and enforce the provisions of PMLA in India. This is a project of national importance and aims to strengthen the financial security architecture of India. The mission statement of FINnet 2.0 is to provide quality financial intelligence for safeguarding the financial system from the abuses of money laundering, terrorism financing, and other economic offenses.

FINnet 2.0 is being implemented as a set of three systems to ensure that the data ingested and processed by the three is isolated and immune to security threats as much as possible and all data is secure. The systems are listed below –

• FINGate – Collection and pre-processing system
• FINCore – Processing and analysis system
• FINex – Dissemination system

The FINnet 2.0 reporting generating System, i-RISE (Regulatory Intelligence Solution for Entities), developed by IDBI Intech is an application that gives the users unique features starting from creating the request at front-end and generating the data from system without any manual intervention as per the FIU India Regulatory guidelines of reporting.