India has strengthened its financial surveillance framework through FIU-IND agreements with SEBI and PFRDA, aiming to curb money laundering and terror financing while reinforcing regulatory coordination across securities and pension sectors.
NEW DELHI — India has taken a significant step to reinforce its financial regulatory architecture with the signing of two key agreements aimed at combating money laundering and illicit financial flows across major segments of the financial system.
The Financial Intelligence Unit-India signed Memorandums of Understanding (MoUs) with the Securities and Exchange Board of India and the Pension Fund Regulatory and Development Authority, strengthening inter-agency coordination in monitoring suspicious financial activities.
The MoU between FIU-IND and SEBI marks a major advancement in strengthening oversight within India’s securities market. The agreement was signed by FIU-IND Director Amit Mohan Govil and SEBI Whole Time Member Sandip Pradhan.
Under the agreement, both agencies will engage in structured intelligence sharing, allowing access to relevant information available in their respective databases. The framework establishes clear procedures for entities regulated by SEBI to comply with requirements under the Prevention of Money Laundering Rules.
The MoU also incorporates provisions for international cooperation through the Egmont Principles of Information Exchange, enabling coordination with foreign financial intelligence units. Officials said the agreement would facilitate joint training and outreach programmes to enhance Anti-Money Laundering and Combating Financing of Terrorism (AML/CFT) systems across market participants.
Quarterly meetings are planned to review emerging threats, exchange intelligence inputs, and ensure regulatory alignment. The framework also focuses on identifying red flag indicators and strengthening compliance monitoring under the Prevention of Money Laundering Act and SEBI regulations.
In a parallel development, FIU-IND entered into a similar agreement with PFRDA to enhance oversight of India’s pension ecosystem. The MoU was signed by Amit Mohan Govil and PFRDA Whole Time Member Randip Singh Jagpal in the presence of Chairperson Sivasubramanian Ramann.
The agreement aims to improve coordination and information sharing between the two agencies. It mandates the designation of nodal officers to facilitate continuous communication and operational efficiency.
Like the SEBI agreement, the MoU emphasises capacity building through training and awareness programmes for entities regulated by PFRDA. It also aligns with international standards by incorporating mechanisms for cross-border information exchange.
The framework includes periodic consultations to assess risks, disseminate red flag indicators, and ensure compliance with obligations under the Prevention of Money Laundering Act and PFRDA guidelines.
FIU-IND functions as the central national agency responsible for receiving, processing, analysing, and disseminating information related to suspicious financial transactions, playing a critical role in combating illicit financial flows.
SEBI, established under the SEBI Act, 1992, regulates India’s securities market and ensures transparency, investor protection, and orderly functioning. PFRDA, constituted under the PFRDA Act, 2013, oversees the pension sector, including the National Pension System and Atal Pension Yojana, ensuring its orderly growth and safeguarding subscriber interests.
The signing of these MoUs reflects India’s continued efforts to strengthen institutional mechanisms against financial crimes. By enhancing intelligence sharing, regulatory coordination, and compliance enforcement, authorities aim to build a more resilient financial ecosystem aligned with global standards.
The move underscores the government’s broader strategy to ensure transparency, stability, and security across financial markets, particularly as India’s financial system expands and integrates further with global networks.
