The Reserve Bank of India is learnt to have recommended the setting up of an independent financial intelligence unit to deal with money laundering and terrorist financing.
According to banking industry sources, an independent body could act as a central database for sharing of information by various regulatory bodies.
This is in accordance with the financial action task force set up by developed countries.
The basic principles are based on the United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, 1988 (the Vienna Convention) and United Nations Convention against Transnational Organised Crime, 2000 (the Palermo Convention).
According to FATF recommendation, countries should establish an FIU that serves as a national centre for receiving, analysing and disseminating information regarding potential money laundering or terrorist financing.
The FIU should have access, directly or indirectly, on a timely basis to the financial, administrative and law enforcement information that it requires to properly undertake its functions, including the analysis of specific cases.
The FATF has also recommended that the designated law enforcement agency of a country should also have the responsibility to investigate money laundering and terrorist financing.
Countries should also support and develop special investigative techniques suitable for the investigation of money laundering, such as controlled delivery, undercover operations and other relevant techniques.
