Financial Intelligence Unit – India (FIU-IND)
The Financial Intelligence Unit – India (FIU-IND) is the national agency under the Department of Revenue, Ministry of Finance, responsible for receiving, processing, and disseminating suspicious transaction reports (STRs) and other financial intelligence to combat money laundering and terrorist financing.
FIU-IND was established in November 2004 as India's Financial Intelligence Unit, modelled on the global FATF (Financial Action Task Force) framework for anti-money laundering (AML) and combating the financing of terrorism (CFT). It functions as the central repository and analytical hub for financial intelligence, sitting at the intersection of the regulated financial sector and law enforcement.
Reporting entities under the Prevention of Money Laundering Act (PMLA), 2002 are required to maintain records of transactions, perform customer due diligence (KYC), and file reports with FIU-IND. These reporting entities include banks, NBFCs, stock brokers, mutual fund companies, insurance companies, payment system operators, and casinos. The key reports filed include Suspicious Transaction Reports (STRs), Cash Transaction Reports (CTRs) for cash transactions above Rs 10 lakh, and Non-Profit Organisation Transaction Reports (NTRs).
FIU-IND analyses these reports, correlates them with other financial and enforcement data, and disseminates intelligence to investigative agencies such as the Enforcement Directorate (ED), CBI, Income Tax Department, and SEBI. It also collaborates with foreign FIUs through the Egmont Group — a network of 166 financial intelligence units globally — facilitating cross-border financial intelligence sharing.
From a compliance perspective, FIU-IND registration and reporting obligations are critical for all regulated financial intermediaries. Non-compliance with STR filing, KYC norms, or record-maintenance requirements can result in substantial penalties and licence revocation. SEBI-registered intermediaries — including brokers, depositories, and asset managers — are subject to AML/KYC frameworks that ultimately feed into the FIU-IND reporting architecture.
For investors and compliance officers at financial firms, understanding the FIU-IND framework is essential. STR filing obligations are triggered by unusual transaction patterns, and the AML programme of any regulated financial entity must be calibrated to detect and report such patterns promptly.