FIU to get PAN data from Income Tax Department to check suspicious large transactions

The Financial Intelligence Unit is the nodal agency authorized to obtain cash transaction reports from private and public sector banks. The FIU receives reports every month to analyse suspicious cases.

Highlights

This time, the Income Tax Department has allowed to share PAN details of individuals to dig deeper into large suspicious accounts. FIU forwards suspicious accounts to law enforcement, intelligence agencies and investigative agencies of GoI. This will help to check possible instances of tax evasion, money laundering and terror financing.

Prevention of Money Laundering Act

The FIU is empowered to receive Cash Transaction Reports (CTR) under the Prevention of Money Laundering Act. A bank has to furnish CTR to FIU every month incorporating all transactions over Rs 10 lakhs.

What is the issue?

Disclosing PAN will help FIU to get bigger picture of money laundering and tax evasion. There are cases where numerous small transactions take place without mentioning PAN. The money launders use these short cuts to get tax evasion. Such situations can now be avoided.

Financial Intelligence Unit

The FIU was set up by India in 2004 as the central national agency responsible for receiving, processing, analyzing and disseminating information related to suspicious financial transactions. The FIU is an independent body that reports to the Economic Intelligence Council that is headed by the Finance Minister.

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