MCA signs MoUs for developing a Comprehensive system for early detection of corporate frauds

Signing of MOUs between Ministry of Corporate Affairs and Financial intelligence unit & NIELIT

Giving a fillip to the early establishment of a state-of-art Forensic Lab within the premises of Serious Fraud Investigation Office (SFIO) in the national capital; and the development of a Comprehensive Early Warning System (EWS) for detection of corporate fraud and malfeasance at the earliest, three important MoUs were signed here today in the Ministry of Corporate Affairs in the presence of Shri Sachin Pilot, Minister of Corporate Affairs.

The MoUs signed were:

1. Between Director, SFIO ( which functions under the Ministry of Corporate Affairs) and Director, National Institute of Electronics and Information Technology (NIELIT), a scientific organization under the Ministry of Communications and Information Technology;

2. Between Joint Secretary, Ministry of Corporate Affairs and Director, Financial Intelligence Unit (FIU-IND), an agency under the Ministry of Finance; and 3. Director, SFIO and Director, FIU-IND.

Shri. Naved Masood, Secretary, Ministry of Corporate Affairs was also present on the occasion.

As per the Memorandum, NIELIT will set up a state-of-art Forensic Lab within the premises of SFIO – with a total outlay of Rs. 3.80 Crore on a turnkey basis, to be completed in two phases.

The MoUs signed with FIU-IND will lead to better and faster exchange of information between the 3 Govt. of India entities. FIU has been playing a pivotal role in the collection and dissemination of information on suspicious banking transactions under the Prevention of Money Laundering Act, 2002. FIU-IND has been helping both the Ministry and SFIO from time to time by supplying information on suspicious banking transactions. Having access to banking information as well as expertise of FIU, the MoU will help SFIO in conducting its investigation in a more effective manner. These initiatives will facilitate development of a comprehensive EWS for detection of fraud and malfeasance at the earliest.

Tags: Corporate Affairs MinistryFinancial IntelligenceFIUMemorandum of understandingSFIO

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