FIU India Addresses Fintelekt Summit

Shailesh Thakur, Additional Director, Financial Intelligence Unit India (FIU-IND) at the Fintelekt 12th Annual AML CFT Summit India 2023

In his keynote address at Fintelekt’s 12th Annual AML/CFT Summit 2023, Shailesh Thakur, Additional Director, #FIU #India, discussed three broad themes in view of India’s ongoing #MutualEvaluation by the Financial Action Task Force (FATF). 

First, he emphasized that the FATF evaluates the #AML #CFT framework of a country in its entirety, which includes not only the effectiveness of the #government machinery, but also the #privatesector reporting entities that are responsible for implementing the framework. This necessitates that all stakeholders have a shared understanding of #ML #TF risks. During the mutual evaluation process, the FATF #assessors interact extensively with a chosen set of #reportingentities from various sectors within the country and evaluate their organisational AML/CFT framework on a broad range of parameters such as the robustness of their enterprise-wide #riskassessment, #duediligence processes, #transactionmonitoring and #reporting, #resources and #training.

While the assessment process is rigorous, it is an opportunity for organisations to benchmark their AML processes with global standards, identify gaps and initiate conversations within their institutions to address those gaps. 

Shailesh Thakur, Additional Director, Financial Intelligence Unit India (FIU-IND)

Secondly, Mr. Thakur articulated on FIU India’s journey in setting up a #PublicPrivatePartnership – the FIU India Initiative for Partnership in AML/CFT (#FPAC) comprising 46 reporting entities, the FIU India, the Reserve Bank of India (RBI) and the National Payments Corporation Of India (NPCI) as members so far. The initiative is providing a forum for sharing insights, trends and concerns amongst members and is providing invaluable #intelligence to the FIU India. It is being used effectively by the FIU India to close the feedback loop with reporting entities and to encourage peer learning. 

The third theme in the keynote address was around a Private-Private Initiative, which the FIU India envisages to be a #collaborative information sharing mechanism for reporting entities without the involvement of the FIU or any #regulator.

Such an initiative can be a game changer in the AML/CFT space in India with its potential to break #silos, stimulate inter-sectoral dialogue and sharing of best practices among reporting entities. 

Mr. Thakur also stressed the need for prioritizing AML/CFT training, especially given the large number of new entrants such as #fintechs and #virtualasset #serviceproviders and improving the AML/CFT skill sets in the industry.