Marketmen may get to report doubtful trades with single ID

The financial intelligence unit (FIU-IND) will shortly issue an advisory on whether the stock market intermediaries can file suspicious transaction reports (STRs) from a single FIU reporting entity ID.
The new model, if successful, can make filing of suspicious transaction reports easier for market intermediaries who currently have to obtain separate registration IDs (FIU reporting entity identification or FIUREID) for each stock market category they operate in.
"We are looking into the feasibility of allowing intermediaries to file reports under one FIUREID...They would not have to register more than once," FIU-IND additional director Deepika Mittal said here.
"The FIU-IND will come out with an advisory in some days," she said, speaking at a seminar on money laundering organised by the BSE Brokers Forum.

FIU-IND director P K Tiwari said at the event that reporting entities cannot know whether a transaction is suspicious unless they have a fairly good knowledge of the customers.
"So the KYC should not be only about taking an identification document but having a deeper information about your customer as much as possible so that you can assess whether his/her transactions are commensurate with the profile disclosed or not," Tiwari said.

Noting that all reports on suspicious dealings are kept confidential and shared only with authorised investigation personnel, Tiwari said under anti-money laundering laws a reporting entity does not incur civil or criminal liabilities in case it has breached any other law in informing about the suspected transaction.

He also said that suspicious transaction report should be filed within seven days of noticing the transaction.
The FIU-IND receives, processes, analyses financial transactions and disseminates information relating to suspicious deals to various national law enforcement agencies.
BSE CEO Ashishkumar Chauhan said the exchange has taken various steps, including introduction of a framework to review the price bands on a weekly, monthly, quarterly and yearly basis, to check tax evasion and price manipulation.
He also said the exchange is planning to issue two different segments for stock listed on it in a month.