New Delhi: The Financial Intelligence Unit (FIU-IND) and the National Housing Bank (NHB) have signed a Memorandum of Understanding (MoU) to enhance collaboration in implementing the Prevention of Money Laundering Act (PMLA) and related regulations. The MoU, signed in New Delhi by Vivek Aggarwal, Director of FIU-IND, and Sanjay Shukla, Managing Director of NHB, aims to strengthen the Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) framework in India’s housing finance sector.
Key areas of cooperation outlined in the agreement include:
Information Sharing: Both parties will share intelligence from their respective databases to address money laundering risks effectively.
Supervised Entities: A framework for ensuring compliance of housing finance companies with PMLA rules will be established, alongside outreach and training initiatives for these entities.
Risk Assessment: The MoU emphasizes assessing vulnerabilities in housing finance companies and identifying red flag indicators for suspicious transactions.
Compliance Monitoring: FIU-IND and NHB will collaborate to supervise and monitor adherence to PMLA, RBI, and NHB guidelines by reporting entities.
Skill Development: Upgrading AML/CFT skills within supervised entities is a key focus area.
Additionally, quarterly meetings will be conducted to review typologies and trends in AML/CFT crimes, sanctions, and emerging threats.
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