NOW, FIU CAN GENERATE CASH LAUNDERING DATA IN 72 HRS

NEW DELHI: The government has bolstered the capabilities of the elite Financial Intelligence Unit (FIU), so it can dish out volumes of data on suspicious transactions in 72 hours flat and also gain access to the secret database of offenders maintained by various law enforcement agencies.

Earlier, when an agency wanted to get any information on financial transactions and similar details on entities on its scanner, the time taken used to be anywhere between 14 and 20 days.

The elite financial snoop wing under the Union finance ministry has switched to full electronic mode for exchange of data, as opposed to the earlier paper-based pattern, from November 1. Similar changes have also be made in other probe and enforcement agencies of the country, including the Income Tax department, the Central Bureau of Investigation and the Intelligence Bureau.

The Special Investigation Team (SIT) on black money had also recommended to the government in its first report that the FIU’s capabilities be enhanced, so it can help probe agencies in a timely and pro-active fashion.

The FIU is the national agency mandated to collect, analyse and disseminate suspicious transaction reports, cash transaction reports and fake currency reports to various probe agencies. It acquires these reports from banks and other financial intermediaries under a stipulated mechanism.

The agency is also empowered to act and take penal action against defaulting agencies under the Prevention of Money Laundering Act.

UNDER THE PREVIOUS PAPER-BASED SYSTEM, THE INTEL AGENCY USED TO TAKE ANYWHERE BETWEEN 14-20 DAYS TO PREPARE SUCH A REPORT