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Consider the following statements regarding the Financial Intelligence Unit:
1. It disseminates information relating to suspected financial transactions.
2. It works directly under the Prime Minister’s Office.
Which of the statements given above is/are correct?
- a)1 only
- b)2 only
- c)Both 1 and 2
- d)Neither 1 nor 2
Correct answer is option 'A'. Can you explain this answer?
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Most Upvoted Answer
Consider the following statements regarding the Financial Intelligence...
India's Financial Intelligence Unit (FIU) is keeping a close eye on large cash deposits and withdrawals from cooperative banks ahead of the 2024 Lok Sabha elections.
- It was set by the Government of India in November 2004.
- It is the central national agency responsible for receiving, processing, analyzing and disseminating information relating to suspect financial transactions.
- It is also responsible for coordinating and strengthening efforts of national and international intelligence, investigation and enforcement agencies in pursuing the global efforts against money laundering and financing of terrorism.
- It is an independent body reporting directly to the Economic Intelligence Council (EIC) headed by the union Finance Minister.
- Functions:
- Collection of Information: Act as the central reception point for receiving Cash Transaction reports (CTRs), Non-Profit Organisation Transaction Report (NTRs), Cross Border Wire Transfer Reports (CBWTRs), Reports on Purchase or Sale of Immovable Property (IPRs) and Suspicious Transaction Reports (STRs) from various reporting entities.
- Analysis of Information: Analyze received information in order to uncover patterns of transactions suggesting suspicion of money laundering and related crimes.
- Sharing of Information: Share information with national intelligence/law enforcement agencies, national regulatory authorities and foreign Financial Intelligence Units.
- Act as Central Repository: Establish and maintain national data base on the basis of reports received from reporting entities.
- Coordination: Coordinate and strengthen collection and sharing of financial intelligence through an effective national, regional and global network to combat money laundering and related crimes.
- Research and Analysis: Monitor and identify strategic key areas on money laundering trends, typologies and developments.
Hence only statement 1 is correct.
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Consider the following statements regarding the Financial Intelligence...
Understanding the Financial Intelligence Unit (FIU)
The Financial Intelligence Unit (FIU) is a crucial part of India's financial regulatory framework. Let's analyze the statements provided in the question.
Statement 1: It disseminates information relating to suspected financial transactions.
- This statement is correct.
- The primary function of the FIU is to collect, analyze, and disseminate information regarding suspicious financial activities.
- It plays a pivotal role in combating money laundering and terrorist financing by ensuring that financial institutions report such transactions.
Statement 2: It works directly under the Prime Minister’s Office.
- This statement is incorrect.
- The FIU operates under the Department of Revenue, Ministry of Finance, Government of India, rather than the Prime Minister’s Office.
- While it may have interactions with various government bodies, it is not directly subordinate to the PMO.
Conclusion
- Since only the first statement is correct, the answer is option 'A': 1 only.
- The FIU is essential for maintaining the integrity of the financial system by monitoring and acting upon potential fraudulent activities, but its operational oversight does not fall under the Prime Minister’s Office.
The Financial Intelligence Unit (FIU) is a crucial part of India's financial regulatory framework. Let's analyze the statements provided in the question.
Statement 1: It disseminates information relating to suspected financial transactions.
- This statement is correct.
- The primary function of the FIU is to collect, analyze, and disseminate information regarding suspicious financial activities.
- It plays a pivotal role in combating money laundering and terrorist financing by ensuring that financial institutions report such transactions.
Statement 2: It works directly under the Prime Minister’s Office.
- This statement is incorrect.
- The FIU operates under the Department of Revenue, Ministry of Finance, Government of India, rather than the Prime Minister’s Office.
- While it may have interactions with various government bodies, it is not directly subordinate to the PMO.
Conclusion
- Since only the first statement is correct, the answer is option 'A': 1 only.
- The FIU is essential for maintaining the integrity of the financial system by monitoring and acting upon potential fraudulent activities, but its operational oversight does not fall under the Prime Minister’s Office.
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Consider the following statements regarding the Financial Intelligence Unit:1. It disseminates information relating to suspected financial transactions.2. It works directly under the Prime Minister’s Office.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer?
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