SF Prep Notes

FIU-IND and RBI sign MoU for coordination under the PMLA

The Financial Intelligence Unit-India (FIU-IND) and the Reserve Bank of India signed an MoU in New Delhi on 17 April 2025 for coordination and information exchange in implementing the Prevention of Money Laundering Act.

Summary

The Financial Intelligence Unit-India (FIU-IND) and the Reserve Bank of India (RBI) signed a Memorandum of Understanding in New Delhi on 17 April 2025 for coordinated implementation of the Prevention of Money Laundering Act (PMLA) and its Rules, the Finance Ministry said. It was signed by FIU-IND Director Vivek Aggarwal and RBI Executive Director (Department of Regulation) R.L.K. Rao. Under the MoU, each side will appoint a nodal officer and an alternate, share relevant intelligence and information, conduct outreach and training for regulated entities, assess money laundering and terror financing risks, identify red-flag indicators for suspicious transactions, supervise RBI-regulated entities' PMLA compliance, and hold quarterly meetings.

Key facts

Date / place
17 April 2025, New Delhi
Parties
FIU-IND and RBI
Law
Prevention of Money Laundering Act and Rules
Signatories
Vivek Aggarwal (Director, FIU-IND); R.L.K. Rao (ED, RBI)
Mechanism
Nodal officers; quarterly meetings; red-flag indicators for suspicious transactions

Practice MCQs 2 questions

Q1

The MoU signed between FIU-IND and the RBI on 17 April 2025 is aimed at effective compliance with which law?

Show answer

Correct answer: B — Prevention of Money Laundering Act

The Prevention of Money Laundering Act and the Rules framed under it.

Q2 Advanced

Consider the following statements about the FIU-IND–RBI MoU of April 2025: 1. The two sides will hold quarterly meetings on issues of mutual interest. 2. The MoU was signed on behalf of the RBI by the Governor. Which of the statements given above is/are correct?

Show answer

Correct answer: A — 1 only

Only 1 is correct. The RBI signatory was R.L.K. Rao, Executive Director, Department of Regulation, not the Governor.

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