NOTE ON FINANCIAL INTELLIGENCE UNIT REGISTRATION (FIU-REGISTRATION)

1. INTRODUCTION

‘Reporting Entity’

FIU-IND has identified the following entities to be registered under FIU-IND and provide reporting of transactions

• Financial Institutions;
• Intermediaries Virtual Digital Asset (VDA) service provider;
• Chit Fund Companies;
• Chit Fund Companies;
• Housing Finance Institutions;
• Non-Banking Financial Companies (NBFCs).

1. BRIEF DETAIL ON FINANCIAL INTELLIGENCE UNIT

The Government of India has set up Financial Intelligence Unit – India (FIU-IND) to coordinate and strengthen collection and sharing of financial intelligence through an effective national, regional and global network to combat money laundering and related crimes. FIU-IND is the national agency responsible for receiving, processing, analyzing financial transactions and disseminating information related to suspect transactions to various national intelligence/enforcement agencies.

Financial intelligence Unit is the gathering of information about the financial affairs of entities of interest, to understand their nature and capabilities, and predict their intentions. Generally, the term applies in the context of law enforcement and related activities.

The reporting formats specified are:

1. Account based reporting format (ARF) for reporting of account based CTRs, STRs and NTRs;
2. Transactions based reporting format (TRF) for reporting of transaction based CTRs, STRs and NTRs;
3. CCR reporting format (CRF) for reporting of counterfeit currency reports (CCRs).

1. DEFINITIONS & OVERVIEW OF FIU

1. Who is the Principal Officer?

Principal Officer is an officer designated by a reporting entity for the purpose of Section 12 of PMLA. Rule 7 of the PML Rules requires every reporting entity to communicate the name, designation and address of the Principal Officer to the Director, FIU-IND.

1. Who is a Designated Director?

“Designated Director” means a person designated by the reporting entity to ensure overall compliance with the obligations imposed under the PML Act and the PML Rules and includes –

1. the Managing Director or a whole-time Director if the reporting entity is a company;
2. the managing partner if the reporting entity is a partnership firm;

• the proprietor if the reporting entity is a proprietorship concern;

1. the managing trustee if the reporting entity is a trust;
2. a person or individual who controls and manages the affairs of the reporting entity if the reporting entity is an unincorporated association or a body of individuals, and;
3. such other person or class of persons as may be notified by the Government if the reporting entity does not fall in any of the categories above.

1. FUNCTIONS OF FIU-IND:

Functions of the Financial Intelligence Unit

• Collection of Information:- to act as central reception point for receiving all transnational reports 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;
• Acting as Central Repository :- Establish and maintain national database on the basis of reports received from reporting entities;
• Co-ordination:- Coordinate and strengthen collection and sharing of financial intelligence through an effective national and global network to combat money laundering;
• Research and Analysis:- Monitor and identify strategic key areas on money laundering trends, typologies and developments.

1. DOCUMENTS REQUIRED

• Aadhar card of all the directors;
• PAN card of all the directors;
• PAN card of the company;
• Chit Fund/ NBFC/FI/ any intermediary Registration Certificate;
• Detail regarding whom to be appointed as an authorized representative;
• Experience Certificate of all the Directors;
• Educational Proof of all the Directors;
• Any RBI/SEBI Communication;
• Certified True Copy regarding the registration of with FIU;
• Representation Letter;
• Financial Statement of previous three years:
• Balance Sheet
• Auditor Report
• Profit and Loss;
• Any registration with another government authority.

1. PLACE OF RENDERING SERVICES:

The place of rendering services generally shall be our office situated at Office No. 106, B- Wing Sr No. 55, Sukhniwas, 15th August Chowk, Mangalwar Peth, Pune – 411011, Maharashtra, India.

1. FEES:

Package of expenses for the Company registration under Financial Intelligence Unit will be –

*GST @ 18% shall be applicable

**Government fees & out of pocket expenses at actuals

1. TIMELINE:

The Timeline for the said assignment shall be 15-20 working days.

1. TERMS AND CONDITIONS:

• Assigner shall nominate specific person(s) for co-ordination and shall provide relevant data support in concern assignment Mr. Pramodkumar Ladda and Mr. Aadarsh Singh will be assigned person.
• All the payments should be made in the name of “Ladda Bhutada & Associates”.
• GST will be added separately additionally @18% on above mentioned fees.
• All the disputes shall be subject to Pune Jurisdiction.
• Above proposal is given for services up to opening of Virtual Digital Asset (VDA) service provider in India.
• Termination of this contract requires 30 days’ notice.
• Payment Terms- 50% advance along with Work Order, 50% after submission of Application for approval.
• GST- Extra as Applicable.

We hope the above is in line with your requirements.  Hoping for favorable response from your end.

“Our priority is Clients satisfaction and we believe in maintaining healthy and long term relations with our clients.”

Sd/-

CS IP PRAMODKUMAR R. LADDA

Company Secretary & Insolvency Professional