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Feature | Financial Intelligence Unit (FIU-IND) | Foreign Assets Investigation Unit (FAIU) |
---|---|---|
Background | Established to collect, analyze, and disseminate financial intelligence to combat money laundering, terrorist financing, and financial crimes. | Focuses on undisclosed foreign assets, income, and financial transactions, especially violations of tax and financial laws. |
Key Focus | Suspicious Financial Transactions (SFTs) flagged by banks and financial institutions, including high-value cash transactions and unusual fund flows. | Investigating Indian taxpayers with unreported foreign assets, foreign bank accounts, offshore investments, and properties abroad. |
Legal Framework | Operates under the Prevention of Money Laundering Act (PMLA), 2002 and reports to the Economic Intelligence Council (EIC), headed by the Finance Minister. | Operates under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act (BMA), 2015 along with the Income Tax Act, 1961 (ITA). |
Scope of Activities | – Collecting Suspicious Transaction Reports (STRs). – Sharing intelligence with ED, CBI, Income Tax Department, foreign FIUs, etc. – Investigating financial crimes within India. |
– Probing shell companies and tax haven accounts. – Enforcing tax evasion cases involving foreign assets. – Imposing penalties under BMA, 2015. – Seizing assets located in India related to foreign tax evasion. – Coordinating with OECD, FATF, and international financial bodies. |
Payment banks must rigorously follow AML/CFT norms and KYC regulations to prevent misuse of financial channels.The penalty highlights increasing scrutiny on digital payment players and banks handling high-risk transactions. Entities using such banks for financial transactions should ensure compliance to avoid legal consequences.
Show Cause Notice issued: Paytm Payments Bank was asked to respond to compliance failures. Written and oral submissions were considered. Violations were substantiated based on voluminous evidence. On March 1, 2024, FIU-IND imposed a penalty of ₹5.49 crore on Paytm Payments Bank Ltd under Section 13 of the PMLA. Official Press Release: Press Information Bureau (PIB)
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