**Executive Summary**
On April 16, 2026, the Financial Intelligence Unit-India (FIU-IND) and the Securities and Exchange Board of India (SEBI) signed a Memorandum of Understanding (MoU) to enhance coordination in combating money laundering and financial crimes. The agreement establishes a framework for collaborative intelligence sharing, joint risk assessments, and the standardization of reporting procedures for regulated entities. Key action items include the commencement of quarterly meetings and the implementation of enhanced Anti-Money Laundering and Combating Financing of Terrorism (AML/CFT) training programs.
**Key Points / Main Content**
**Information Sharing and Global Coordination**
* Mutual exchange of relevant intelligence and information stored in the respective databases of FIU-IND and SEBI.
* Facilitation of information exchange with foreign Financial Intelligence Units through the Egmont Principles of Information Exchange.
* Requirement for both agencies to hold quarterly meetings to deliberate on mutual interests and share information.
**Regulatory Procedures and Compliance**
* Establishment of specific procedures and modalities for reporting by regulated entities to FIU-IND under the PML Rules.
* Dissemination of "red flag" indicators to help entities identify and report suspicious transactions.
* Enhanced supervision and monitoring of reporting entities to ensure compliance with PMLA, PML Rules, and SEBI guidelines.
**Risk Assessment and Capability Building**
* Conducting joint assessments of Money Laundering and Terror Financing (ML/TF) risks and vulnerabilities across various financial sub-sectors.
* Implementation of outreach and training programs to upgrade the AML/CFT capabilities of SEBI-regulated reporting entities.
* Ensuring all collaborative efforts and regulatory requirements align with applicable international standards.
**Impact Analysis**
**Financial Intelligence Unit-India (FIU-IND)**
**Impact**
FIU-IND receives a strengthened framework for receiving and analyzing suspect financial transactions within the securities market. It benefits from SEBI’s specialized market intelligence to coordinate anti-money laundering efforts more effectively.
**Action Required**
Coordinate quarterly meetings, share database intelligence with SEBI, and assist in the development of upgraded reporting modalities.
**Securities and Exchange Board of India (SEBI)**
**Impact**
SEBI enhances its supervisory and regulatory framework for market intermediaries and listed entities. The collaboration allows for a more robust defense against financial crimes that could threaten the integrity of the securities market.
**Action Required**
Collaborate on training programs, align guidelines with FIU-IND requirements, and monitor market participants for compliance with the new information-sharing protocols.
**Regulated Entities and Market Intermediaries**
**Impact**
These entities will face more rigorous monitoring and must adapt to new procedures for reporting suspicious transactions. They will be subject to upgraded AML/CFT standards and periodic risk assessments.
**Action Required**
Comply with updated reporting modalities under PML Rules, participate in mandatory outreach/training programs, and implement identified red flag indicators in their transaction monitoring systems.
Key Entities Referenced
Financial Intelligence Unit-India (FIU-IND): The central national agency responsible for processing suspect financial transactions and a primary signatory of the MoU to enhance intelligence sharing and coordinate anti-money laundering efforts.
Securities and Exchange Board of India (SEBI): The statutory regulatory body for the Indian securities market and a primary signatory of the MoU, focused on upgrading AML/CFT capabilities and supervising compliance of market participants.
Prevention of Money-Laundering Act (PMLA): The primary legislative framework (including the PML Rules) governing the reporting obligations and compliance monitoring that the MoU aims to strengthen.
Securities and Exchange Board of India Act, 1992: The foundational statute that established SEBI and grants it the authority to regulate and supervise the securities market ecosystem and protect investor interests.
Egmont Principles of Information Exchange: The international standards referenced in the MoU to facilitate the exchange of financial intelligence with foreign Financial Intelligence Units.
Ministry of Finance
Financial Intelligence Unit-India and Securities
and Exchange Board of India sign MoU to
combat money laundering and financial crimes
Posted On: 16 APR 2026 1:19PM by PIB Delhi
In a significant step towards strengthening India's fight against money laundering and financial crimes, the
Financial Intelligence Unit-India (FIU-IND) and Securities and Exchange Board of India (SEBI) signed a
comprehensive Memorandum of Understanding (MoU) to enhance information sharing and coordination.
The MoU was signed by Shri Amit Mohan Govil, Director, FIU-IND, and Shri Sandip Pradhan, Whole
Time Member, SEBI marking a new era of collaborative intelligence sharing between the two agencies at
the forefront of India’s fight against money laundering and financial crimes.The collaboration will involve sharing relevant intelligence and information available in their respective
databases, and laying down the procedures and modalities for reporting by regulated entities and reporting
entities to FIU-IND under the provisions of the PML Rules. The MoU shall also assist in exchange of
information with foreign FIU through Egmont Principles of Information Exchange.
The MoU aims to enable both agencies to undertake outreach and training programmes for
regulated/reporting entities, with a focus on upgrading Anti-Money Laundering and Combating Financing
of Terrorism (AML/CFT) capabilities among entities regulated by the SEBI. Further, both parties shall
ensure alignment with applicable international standards and hold quarterly meetings to exchange
information and deliberate on issues of mutual interest.
The cooperation will also include assessment of Money Laundering and Terror Financing (ML/TF) risks
and vulnerabilities across relevant financial sub-sectors, identification and dissemination of red flag
indicators for suspicious transactions, and supervision and monitoring of compliance by reporting entities
with obligations under the PMLA, PML Rules, and SEBI guidelines.
ABOUT FINANCIAL INTELLIGENCE UNIT-INDIA (FIU-IND)
FIU-IND is the central national agency responsible for receiving, processing, analyzing, and disseminating
information relating to suspect financial transactions and coordinating efforts against money laundering
and financing of terrorism.
ABOUT SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI)
The Securities and Exchange Board of India (SEBI) is the statutory regulatory body established under the
Securities and Exchange Board of India Act, 1992, responsible for regulating and supervising the
securities market in India and protecting the interests of investors. SEBI provides a comprehensive
regulatory and supervisory framework for market intermediaries, listed entities and other participants in
the securities market to ensure transparency, integrity and orderly functioning of the market ecosystem.
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