- Why in news
- On 16 April 2026, FIU-IND and SEBI signed an MoU to share intelligence and coordinate on money laundering and terror financing, including supervision of reporting entities under the PMLA.
- What it is
- FIU-IND is India's central national agency for receiving, analysing and passing on information about suspect financial transactions. It works under the Prevention of Money Laundering Act, 2002 and the PML Rules. It also coordinates India's efforts against money laundering and terror financing.
- Role of FIU-IND
- It is the central agency that receives, processes, analyses and disseminates information on suspect financial transactions.
- Foreign FIU exchange
- The MoU supports information exchange with foreign FIUs through the Egmont Principles of Information Exchange.
- Legal basis of SEBI
- SEBI is a statutory body set up under the SEBI Act, 1992 to regulate the securities market and protect investors.
- Review mechanism
- The two bodies will hold quarterly meetings to exchange information and discuss issues of mutual interest.
- Risk work
- The cooperation covers assessing ML/TF risks across financial sub-sectors and sharing red flag indicators for suspicious transactions.
Don’t confuse with FIU-IND vs Enforcement Directorate: FIU-IND only analyses and passes on financial intelligence. The ED investigates and prosecutes money laundering offences under the PMLA.
Don’t confuse with FIU-IND vs SEBI: SEBI is a market regulator. FIU-IND is an intelligence agency that receives reports from reporting entities, not a regulator of the market.
Laws, judgments and statutory bodies: 30 Prelims questions since 2013 (what the law says, who chairs, legal basis). In Mains, 44 news-triggered questions, most in GS2, asking for provisions and challenges.
Why it matters
- Sharing data between the market regulator and the financial intelligence agency helps detect money laundering through securities markets.
- Joint outreach and training raise AML/CFT compliance among SEBI-regulated entities and help meet international standards.
Problems
- Agency data silos and varied reporting formats can slow the flow of intelligence.
- Compliance burden on reporting entities and the need to protect data privacy.
Way forward
- Use technology for real-time, standardised data sharing among regulators, FIU-IND and enforcement agencies.
- Regular joint risk assessments and training, with safeguards on use of shared data.
Put in your answer
FIU-IND–SEBI MoU, April 2026: Example of regulator–intelligence agency coordination on AML/CFT, with quarterly meetings and red-flag indicator sharing.
- 2026Mains GS3 · Q20Counterfeit currency and money laundering as terror funding; FATF role and compliance
- 2013Mains GS3 · Q21Money laundering's threat to India's sovereignty and steps to control it
- 2021Mains GS3 · Q9How technology and globalisation aid money laundering; national and international countermeasures
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
No practice question for this one; the card may still help an answer. Why: FIU-IND is a lasting body under PMLA with Egmont link, but MoU is routine; UPSC has asked only 7 statutory-body Prelims questions.
Worth revising until Prelims 2027: most news questions come within two years of the event.