India’s Financial Intelligence Unit-India (FIU-IND) and the Pension Fund Regulatory and Development Authority (PFRDA) have signed a Memorandum of About to strengthen cooperation against money laundering and financial crimes. The agreement focuses on information sharing, coordination, training, and compliance monitoring across the pension sector. It also aims to improve Anti-Money Laundering and Combating Financing of Terrorism (AML/CFT) capabilities among entities regulated by PFRDA.
Key Features of the MoU
- The two institutions will share information more effectively on suspicious financial activity.
- They will conduct outreach and training programmes for regulated and reporting entities.
- Quarterly meetings will be held to discuss matters of mutual interest.
- Each side will appoint a nodal officer and an alternate nodal officer for coordination.
Focus on AML/CFT Compliance
The MoU is designed to strengthen the detection and prevention of money laundering and terror financing risks in the pension ecosystem. It will support assessment of ML/TF vulnerabilities in relevant financial sub-sectors. It will also help identify and circulate red flag indicators for suspicious transactions. Supervision of compliance with the Prevention of Money Laundering Act (PMLA), PML Rules, and PFRDA guidelines will be part of the cooperation framework.
Role of FIU-IND and PFRDA
FIU-IND is India’s central agency for receiving, analysing, and disseminating information on suspect financial transactions. It coordinates national efforts against money laundering and financing of terrorism. PFRDA is the statutory regulator for India’s pension sector. It supervises the National Pension System and Atal Pension Yojana, along with pension funds and related intermediaries.
International Cooperation and Pension Sector Oversight
The MoU will also support exchange of information with foreign Financial Intelligence Units through Egmont Principles of Information Exchange. This adds an international dimension to India’s anti-financial crime framework. The agreement is expected to improve monitoring, risk assessment, and subscriber protection in the pension ecosystem while aligning domestic practices with global standards.
Last Modified: April 27, 2026