MCA, Financial Intelligence Unit-India sign MoU for Data Exchange between the two

MCA, Financial Intelligence Unit-India sign MoU for Data Exchange between the two

A formal Memorandum of Understanding (MoU) was signed on 16 December, 2021 between the Ministry of Corporate Affairs (MCA) and Financial Intelligence Unit-India, Ministry of Finance for data exchange between the two organizations.

The MoU was signed by Shri Manoj Pandey, Joint Secretary, MCA and Shri Manoj Kaushik, Additional Director FIU-India in the presence of Secretary, MCA, and Director (FIU-India).

The MoU is in agreement with the vision of MCA and FIU-INDIA to bind data competences to make sure effective implementation. The data sharing arrangement gains significance in the development of MCA21 Version 3 and FINNET 2.0. It will utilize state-of-the-art technology for improving their regulatory and facilitating the functions. MCA is in process of rollout of MCA21 Version 3 in phases. FIU-India is in the process of upgrading existing FINnet 1.0 to FINnet 2.0.

FINnet 2.0 project is of national importance and assists FIU-IND by influencing technology to collect, analyse and disseminate financial information. It's used for combating money laundering and related crimes with many improved and additional features to instruct the latest technologies like AI/ML and advanced data analytics to modernise the IT procedures with enhanced strategic data analysis capabilities and other aspects.

The MoU will simplify the sharing of data and information between MCA and FIU-INDIA on an automatic and regular basis. It will enable sharing of specific information like relating to suspicious transactions, KYC related details and consolidated financial statements of companies registered in the country. The MoU will ensure that both MCA and FIU-INDIA have continuous linkage for regulatory purposes. In addition to regular exchange of data, MCA and FIU-INDIA will also exchange with each other, on request, any information available in their respective databases, for the purpose of carrying out inspection, review, investigation and prosecution.

The technology and data will play a grave role going forward in fulfilling the Government's vision of minimum government, maximum governance and both MCA and FIU-INDIA are well placed to fulfil this vision.

The MoU comes into force from the signing date and is a continuing initiative of MCA and FIU-INDIA, both are already cooperating through various existing mechanisms. A Data Exchange Steering Group also has been created for the initiative. It will meet occasionally to evaluate the data exchange status and take steps to further improve the efficiency of the data sharing mechanism.

The MoU marks the inauguration of a new era of collaboration and co-operation between the two organisations.