Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
FINANCIAL
INTELLIGENCE
UNIT- INDIA
(FIU-IND)
Overview
FIU-IND is a Central National Agency which was set up with object
of receipt and analysis of:
 suspect financial...
3
Meanings
“Beneficial Owner” is an individual who
ultimately owns or controls a client of a
reporting entity or the perso...
4
Meanings
“Client” Any person (natural/
artificial) who directly/on whose
behalf any financial transaction
has been enter...
Risk Mitigation
Risk can be minimised by the Reporting Entity by doing the following
things:
1. Categorisation of transact...
Record Keeping
Every Reporting Entity shall keep the record of:
1. All the cash transactions having value more than Rs. 10...
Record Keeping
4. All suspicious transactions whether took place in cash or in kind;
5. All cross border wire transfers of...
Verification
Rule 5 of Prevention of Money-laundering (Maintenance of Records )
Rules, 2005 states that the record shall b...
Document Collection
9
Nature of Client Documents Required
Individual - Photo;
- Nature of business and financial status of...
Information Furnishing
All Reporting Entity shall maintain record of all transactions,
including information furnished to ...
Fine & Penalty
Penalty on Reporting Entity includes both i.e. administrative action
and monetary fine, from Rs. 10,000/- u...
12
For any information or further knowledge about the Financial
Intelligence Unit – FIU-IND, anyone can mail us on:
Email:...
Upcoming SlideShare
Loading in …5
×

0

Share

Download to read offline

All About Financial Intelligence Unit - India (FIU-IND)

Download to read offline

This Power point Presentation contains the complete information regarding Financial Intelligence Unit - India. Here the Reader will get the complete information about Meaning of Financial Intelligence Unit, Main Definitions, Maintenance of Record, Verification of Record and Books, Documents required for registration from Client, Fine and Penalty etc.

Related Audiobooks

Free with a 30 day trial from Scribd

See all
  • Be the first to like this

All About Financial Intelligence Unit - India (FIU-IND)

  1. 1. FINANCIAL INTELLIGENCE UNIT- INDIA (FIU-IND)
  2. 2. Overview FIU-IND is a Central National Agency which was set up with object of receipt and analysis of:  suspect financial transactions and other money laundering related information’s,  dissemination of result of such analysis in close co-operation with the regulatory authority such as RBI, SEBI and IRDA. FIU-IND processes the financial information and share it in manner to the enforcement agencies. One FIU can exchange information with other FIU under mutual agreement which is agreed upon by both the FIU’s. 2
  3. 3. 3 Meanings “Beneficial Owner” is an individual who ultimately owns or controls a client of a reporting entity or the person on whose behalf a transaction is being conducted and includes a person who exercises ultimate effective control over a juridical person. “Principal Officer” is an officer designated by a reporting entity for the purpose of Section 12 of PMLA, 2002. Rule 7 requires every reporting entity to communicate the name, designation and address of the Principal Officer to the Director. “Money Laundering” Transformation of proceeds of illegal/criminal activity into legal source
  4. 4. 4 Meanings “Client” Any person (natural/ artificial) who directly/on whose behalf any financial transaction has been entered into with Reporting entity. “Reporting entity” means and includes a banking company, financial institution, intermediary or a person carrying on a designated business or profession. “Transaction” Includes any deposit, withdrawal, transfer or exchange of funds in any currency whether in cash, cheque, payment order or other electronic instruments or non physical means. “Suspicions transaction” means a transaction even if it is made in cash or not which, to a person acting in good faith – 1.gives rise to a reasonable ground of suspicion that it may involve the proceeds of crime; or 2.appears to be made in circumstances of unusual or unjustified complexity; or 3.appears to have no economic rationale or bona-fide purpose; or 4.gives rise to a reasonable ground of suspicion that it may involve financing of the activities relating to terrorism.
  5. 5. Risk Mitigation Risk can be minimised by the Reporting Entity by doing the following things: 1. Categorisation of transaction into Normal, Cash and Suspicious transactions; 2. Keeping proper record of transactions being entered upon; 3. Maintenance of records of Clients; 4. Implementing client due diligence program; Further risk can be minimised by keeping record of the following transactions [Rule 3]: 5
  6. 6. Record Keeping Every Reporting Entity shall keep the record of: 1. All the cash transactions having value more than Rs. 10 lakh or its equivalent in foreign currency; 2. All the cash transactions which are integrally connected to each other whose individual value is below Rs. 10 lakh or its equivalent in foreign currency and more than one such transaction have taken place within a month and the monthly aggregate value exceeds Rs. 10 lakh; 3. All cash transactions which were 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 facilitating the transactions; 6
  7. 7. Record Keeping 4. All suspicious transactions whether took place in cash or in kind; 5. All cross border wire transfers of the value exceeding Rs.5 lakh or its equivalent in foreign currency where either the origin or destination of fund is in India; 6. All purchase and sale of immovable property valued at Rs.50 lakh or more which is registered by the reporting entity. 7
  8. 8. Verification Rule 5 of Prevention of Money-laundering (Maintenance of Records ) Rules, 2005 states that the record shall be maintained in hard copy/ soft copy relating to transactions with client. Rule 7 authorise Principal Officer to be responsible to furnish the information to the Director, FIU-IND on the basis of information maintained with the Reporting Entity. Every Reporting Entity is required to verify the identity and address of the client, the nature of business of the client and his financial status at the time of opening an account or executing any transaction above Rs. 50,000/- where there is no account-based relationship or where any international money transfer operation is carried out. 8
  9. 9. Document Collection 9 Nature of Client Documents Required Individual - Photo; - Nature of business and financial status of the client; - Passport, PAN, Aadhar, Voter ID etc. of Proprietor Company - Certificate of Incorporation - MOA and AOA - Board resolution for authorisation - Power of Attorney - Photo, Passport, PAN, Aadhar, Voter ID etc. of authorised person Partnership firm - Registration Certificate - Partnership Deed - Power of Attorney - Photo, Passport, PAN, Aadhar, Voter ID etc. of authorised person Trust - Registration Certificate - Trust deed - Power of Attorney - Photo, Passport, PAN, Aadhar, Voter ID etc. of authorised person Unincorporated Persons/ Body of Individual - Proof of legal existence - Resolution of Managing body - Power of Attorney - Photo, Passport, PAN, Aadhar, Voter ID etc. of authorised person Documents to be collected by Reporting Entity while registering any of its clients:
  10. 10. Information Furnishing All Reporting Entity shall maintain record of all transactions, including information furnished to FIU-IND online. Further for this, the Reporting Entity would be required to get itself registered with FIU-IND via using the portal https://finnet.gov.in. and keep record stored for a minimum period of five years. The time Limit for furnishing information about with to Director, FIU-IND is: • Cash and integrally connected cash transactions and reports relating to cash transactions, counterfeit currency, non-profit organization transactions and cross border wire transfers: 15th day of succeeding month • All suspicious transactions, if satisfied that the transaction is suspicious: Not later than 7 working days 10
  11. 11. Fine & Penalty Penalty on Reporting Entity includes both i.e. administrative action and monetary fine, from Rs. 10,000/- upto Rs. 1,00,000/- for each failure.[Section 13] In case fails to pay penal amount within 6 months, the Director, FIU- IND or person authorized by him may proceed for the recovery of arrears as prescribed in Schedule II of the Income-tax Act, 1961 (43 of 1961).[Section 69] The reporting entities and their officers shall not be liable to any civil or criminal proceedings against them for furnishing information. No civil court shall have jurisdiction to entertain any suit upon which the Director is empowered and no injunction shall be granted by any court or other authority in respect of any action taken the concern authority under this Act. 11
  12. 12. 12 For any information or further knowledge about the Financial Intelligence Unit – FIU-IND, anyone can mail us on: Email: complianceship@gmail.com 12 Contact Us

This Power point Presentation contains the complete information regarding Financial Intelligence Unit - India. Here the Reader will get the complete information about Meaning of Financial Intelligence Unit, Main Definitions, Maintenance of Record, Verification of Record and Books, Documents required for registration from Client, Fine and Penalty etc.

Views

Total views

719

On Slideshare

0

From embeds

0

Number of embeds

1

Actions

Downloads

17

Shares

0

Comments

0

Likes

0

×