Sebi signs MoU with FIU to check money laundering acts

As part of its' efforts in effective implementation of anti-money laundering rules, Sebi has signed an MoU with Financial Intelligence Unit (FIU), which is tasked with looking into suspicious financial transactions.
"Sebi and FIU signed a Memorandum of Understanding on Mutual Cooperation on May 2...As part of continued coordinated efforts in effective implementation of requirements of the Prevention of Money Laundering Act and the Rules framed thereunder," the regulator said in statement today.
The regulator and FIU would cooperate with each other in areas of mutual interest including the sharing of intelligence and information available in their respective databases.
The MoU would enable in laying down procedure and manner in which the 'reporting entities' report to FIU under the prevention of money-laundering rules.

It would also help in the assessment of anti-money laundering or combating financing of terrorism risks and vulnerabilities in the capital market sector as well as in identifying "red flag indicators for suspicious transaction reports (STRs) in the capital market".
The MoU, was signed at the regulator's office in New Delhi, by Sebi Whole Time Member R K Agarwal and FIU Director Praveen K Tiwari.

Meanwhile, in a separate statement, Sebi said that global management and development consultancy Mott MacDonald India will carry out a nationwide survey to assess the present state of financial literacy and financial inclusion in the country.

Mott MacDonald has been appointed by the National Centre for Financial Education (NCFE), at the behest of the technical group of the 'sub-committee of the financial stability and development council on financial inclusion and financial literacy'.
The study is expected to cover about 75,000 people across 35 states and union territories and would be completed by August 2014.
Sebi said that the survey "would not only assess the present state of financial literacy and financial inclusion, but also yield benchmarks of core financial literacy and financial inclusion indicators at various socio-economic sub group levels and measure its rate of change on a continual basis to assess the efficacy of various financial education interventions including those under NCFE".

"This study would also provide comparative analysis of states/ UTs and help evaluate India's standing at global level," it added.
NCFE is supported by Sebi, RBI, IRDA, Pension Fund Regulatory and Development Authority and Forward Market Commission.