Now, A Blueprint To Combat Tech-Based Financial Crimes

Operating under the Ministry of Finance, FIU is developing a technical training programme in collaboration with the Securities and Exchange Board of India (SEBI) and the Pension Fund Regulatory and Development Authority (PFRDA).

The two key regulatory bodies in the financial sector will also strengthen outreach programmes. Quarterly meetings be held to exchange information and discuss matters of mutual interest.

In the last five years, a total of 5,158 cases were registered by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA), according to recent data presented by the Ministry of Finance in the Rajya Sabha. 

Collaborating With Regulators

FIU has signed a Memorandum of Understanding (MoU) with SEBI. This was done in the presence of Amit Mohan Govil, FIU Director; and Sandeep Pradhan, full-time member of SEBI.

Under it, they will share data and information on a regular basis to fight frauds in the securities market. This is being done to ensure implementation of the PMLA framework.

FIU also plans to work with PFRDA, for which an MoU has been signed with its Chairman, Shivsubramanian Raman. 

Advanced training programmes will be conducted. To facilitate regular coordination between both agencies, a nodal officer will be appointed, responsible for the regulation, development, and supervision of the pension sector in the country.

What FIU Does

FIU collects information about suspicious financial transactions and receives Suspicious Transaction Reports (STRs) from banks, Non-Banking Financial Companies (NBFCs), stockbrokers, and insurance companies. 

This information is analysed to identify cases of money laundering and terror financing, and whenever necessary, it is shared with agencies such as the Enforcement Directorate, the National Investigation Agency, the Income Tax Department, and the SEBI. 

It also assists in monitoring. 

The conviction rate reached about 95% in cases taken to court by the investigating agency. As per records up to 31 December 2025, the ED had registered 8,391 Enforcement Case Information Reports (ECIRs), of which 1,960 cases resulted in prosecution complaints filed in court based on evidence. So far, PMLA courts have delivered final judgments in 58 cases.

What Is PMLA?

PMLA is a law passed by the Indian Parliament, which came into force on 1 July 2005. 

The objective of this law is to prevent the legalisation of money obtained through illegal activities, to confiscate such properties, and to punish the offenders involved in such crimes. 

The ED is the main agency responsible for investigation and enforcement under this Act. This law applies to banking companies, financial institutions, and intermediaries such as stock market entities. 

A person involved in the offence of money laundering can face imprisonment from three to seven years, along with a fine, and the authorities also have the power to attach and confiscate property obtained through such illegal activities.