Indian Economy

Choose the Correct Answer

Correct Answer : Option a

Explanation
Department of Telecommunications (DoT) and the Financial Intelligence Unit-India (FIU-IND) recently signed a comprehensive Memorandum of Understanding (MoU) to enhance data sharing and inter-agency coordination.

Statement I is correct: Financial Intelligence Unit–India (FIU-IND) established in 2004, serves as the central agency for collecting and analyzing financial transaction data linked to money laundering and terrorism financing. It functions under the Economic Intelligence Council (EIC), chaired by the Union Finance Minister.

Statement II is correct: FIU-IND is an independent body, not under the direct control of any enforcement agency.
Its core functions include:

• Receiving reports such as Cash Transaction Reports (CTRs), Suspicious Transaction Reports (STRs), and Cross Border Wire Transfer Reports (CBWTRs)
• Processing and analyzing these reports to detect patterns of suspicious activity
• Disseminating actionable intelligence to enforcement and regulatory agencies like the Enforcement Directorate (ED), CBI, RBI, and others

Statement II describes the core functions of FIU-IND, it clearly explains the purpose and reason for Statement I. So, both Statement I and Statement II are correct and Statement II explains Statement I.