In a bid to check money laundering, the government on Thursday allowed Financial Intelligence Unit, the central agency for monitoring suspect financial transactions, to ink memorandum of understanding with its overseas counterparts for seeking information in this regard.

Most foreign FIUs require an MoU with Indian counterpart to share information on money laundering, Information and Broadcasting Minister P R Dasmunsi told reporters in New Delhi.

The information or documents received this way would be treated as confidential and subject to official secrecy. The MoUs would envisage that such information would not be disseminated to any third party, he said after the Cabinet decision.

The areas of information would include screening and processing requests from foreign FIUs, disseminating information to them, besides establishing and maintaining relationship with them.

Authorities would not be under any obligation to give assistance if judicial proceedings have already been initiated, he said, adding the MoUs could be amended or revoked any time.

FIU-IND, set up in 2004, reports directly to the Economic Intelligence Council headed by the finance minister. It is a central agency responsible for receiving, processing and disseminating information relating to suspect financial transactions.