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.

1. FINANCIAL
INTELLIGENCE
UNIT- INDIA
(FIU-IND)

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.
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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
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. 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]:
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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;
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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.
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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.
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9. Document Collection
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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. 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
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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.
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For any information or further knowledge about the Financial
Intelligence Unit – FIU-IND, anyone can mail us on:
Email: complianceship@gmail.com
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