The Reserve Bank of India (RBI) and the Financial Intelligence Unit-India (FIU-IND) have signed a Memorandum of Understanding (MoU) to enhance coordination and information exchange in the battle against money laundering and terror financing. The agreement was formalised on 17 April 2025 in New Delhi, with the signing attended by senior officials from both institutions, including Vivek Aggarwal, Director of FIU-IND, and R.L.K. Rao, Executive Director from RBI’s Department of Regulation.
The MoU marks a new chapter in the country’s ongoing efforts to ensure effective implementation of the Prevention of Money Laundering Act (PMLA) and the rules framed under it. The collaboration is set to foster seamless cooperation between the two agencies on issues of mutual interest, particularly in the domains of intelligence sharing and compliance monitoring. Under the terms of the MoU, both RBI and FIU-IND will appoint nodal officers to facilitate regular communication and operational synergy. This is expected to streamline the process of reporting and analysing suspicious transactions, a key step in identifying and curbing illicit financial flows.
A central feature of the agreement is the commitment to share relevant intelligence and data from their respective databases. This is designed to ensure that both institutions have access to timely and actionable information, which is crucial for detecting and preventing money laundering activities and terror financing. The MoU also puts in place a framework for laying down clear procedures for how regulated entities report to FIU-IND under the PMLA rules, thereby improving compliance and transparency across the financial sector.
Recognising the importance of capacity building, the RBI and FIU-IND will jointly conduct outreach and training programmes for regulated entities. These initiatives aim to upgrade anti-money laundering and combating financing of terrorism (AML/CFT) skills, ensuring that financial institutions remain vigilant and well-equipped to respond to evolving threats. The agreement also provides for joint assessment of money laundering and terror financing risks in various financial sub-sectors, as well as the identification of red flag indicators for suspicious transactions.
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To ensure sustained momentum, the MoU mandates quarterly meetings between the two agencies. These sessions will serve as a platform to review progress, discuss emerging challenges, and share insights on issues of mutual concern. The partnership is also aligned with international standards, reflecting India’s commitment to global best practices in AML/CFT compliance.
The collaboration between RBI and FIU-IND is expected to significantly bolster the integrity of India’s financial system. By combining regulatory oversight with intelligence-led enforcement, the MoU sets the stage for a more robust and coordinated approach to combating money laundering and related financial crimes.
