Amid concerns over possible money laundering through stock markets, lapses have been found in online submission of Suspicious Transaction Reports (STRs) by many brokers and other market entities to the Government’s Financial Intelligence Unit (FIU-IND).
Concerns were raised in this regard at a recent meeting of the exchanges and depositories with FIU-IND, the agency responsible for receiving, processing and analysing financial transactions and disseminating information relating to suspect transactions to various intelligence and enforcement agencies.
Pursuant to the meeting, leading bourse NSE has now issued a circular to all its member brokers that “it has been informed by FIU that members are not using the FINnet Gateway Portal” for online submission of their STRs.
This follows a similar circular issued by another bourse BSE, wherein the exchange had asked all its member brokers to “get themselves registered with FIU India through the FINnet Gateway Portal (FINgate)” -- an online interface between the reporting entities and the FIU-IND.
These reports help the enforcement agencies check manipulative practices, fraud and scams, among others. The FIU-IND was set up by the Government to coordinate and strengthen collection and sharing of financial intelligence through national, regional and global networks to combat money laundering and related crimes.