The Financial Intelligence Unit-India and the Pension Fund Regulatory and Development Authority have signed a Memorandum of Understanding aimed at strengthening coordination in the fight against money laundering and financial crimes.
The agreement, announced on April 16, seeks to improve information sharing and institutional cooperation between the two agencies.
MoU Signed to Strengthen Coordination
The MoU was signed by Amit Mohan Govil, Director, FIU-IND, and Randip Singh Jagpal, Whole Time Member, PFRDA, in the presence of Sivasubramanian Ramann, Chairperson, PFRDA. The agreement is intended to support closer engagement between the agencies on issues related to financial crime detection and prevention.
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The arrangement will enable both sides to undertake outreach and training programmes for regulated and reporting entities, with a focus on strengthening Anti-Money Laundering and Combating Financing of Terrorism capabilities among entities regulated by the PFRDA. The two agencies will also seek alignment with applicable international standards and hold quarterly meetings to exchange information and deliberate on issues of mutual interest.
Focus on Risk Assessment and Information Exchange
Each party will designate a nodal officer and an alternate nodal officer to facilitate regular coordination and interaction. The MoU will also assist in the exchange of information with foreign FIUs through the Egmont Principles of Information Exchange.
The cooperation framework will cover assessment of money laundering and terror financing risks and vulnerabilities across relevant financial sub-sectors. It will also include identification and dissemination of red flag indicators for suspicious transactions, as well as supervision and monitoring of compliance by reporting entities under the Prevention of Money Laundering Act, PML Rules and PFRDA guidelines.
Role of Both Agencies
FIU-IND is described as the central national agency responsible for receiving, processing, analysing and disseminating information relating to suspect financial transactions, while coordinating efforts against money laundering and the financing of terrorism.
The PFRDA is the statutory regulatory body established under the PFRDA Act, 2013 for the regulation, development and supervision of India’s pension sector, including the National Pension System and Atal Pension Yojana.
It also provides the regulatory and supervisory framework for intermediaries such as pension funds, central recordkeeping agencies, trustees, aggregators and points of presence, with the stated aim of ensuring orderly growth of the pension ecosystem and protecting subscriber interests.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
