New Delhi
India’s financial intelligence unit (FIU) has issued new alert indicators for capital markets, insurance companies, online payment gateways, and cryptocurrency service providers to better detect suspicious transactions. These updates are part of the nation’s anti-money laundering and counter-terrorism financing framework.
The revised guidelines, issued under the Prevention of Money Laundering Act (PMLA), aim to improve the quality of Suspicious Transaction Reports (STRs) that financial institutions and intermediaries must submit to the FIU. The FIU then analyzes these reports and shares relevant information with other investigative and intelligence agencies.
In the capital markets sector, the new guidelines focus on detecting activities like synchronized trading, order spoofing, and misuse of client funds by stockbrokers. This should lead to better STR reporting and help the FIU generate valuable intelligence.
Insurance companies are encouraged to generate alerts in cases of fraud that could be linked to money laundering or terrorism financing. For online payment gateways, the FIU collaborated with the Reserve Bank of India and the National Payments Corporation of India to address risks related to fast-paced transactions.
Virtual digital assets (VDAs) and cryptocurrency service providers must now register with the FIU and implement the travel rule, which requires sharing sender and recipient data during transactions.
