BSE sets up new system for reporting suspicious trades

Bombay Stock Exchange has instituted new system Suspicious Transaction Reports (STRs) for reporting suspicious trades in order to check money laundering through stock markets.
The national stock exchange has asked its members to report details of the STRs submitted to the government’s Financial Intelligence Unit (FIU) on a monthly basis.
As per new rules

• Trading members are required to submit the data through a specific FIU-STR module on the BSE Electronic Filing System (EFS), an online gateway along with Cash Transaction reports (CTRs).
• In this data members should provide details of their registration with the FIU along with the information regarding the principal officers and the designated directors for the Prevention of Money Laundering Act (PMLA) compliance.

The new system was initiated in line with regulators and Government’s financial intelligence agencies move to enhance their vigil recently on entities trying to misuse the stock market platform for black money laundering and to evade taxes.

About Financial Intelligence Unit

• FIU-India is the central national agency responsible for receiving, analysing and processing financial transactions and disseminating information related to suspect transactions to other enforcement and intelligence agencies
• It was established by the government in 2004 to strengthen and coordinate the collection and sharing of financial intelligence through regional, national and global networks in order to combat money laundering and related crimes.
• It is an independent body working directly under the aegis of Economic Intelligence Council (EIC) headed by the Union Finance Minister.

Month: Current Affairs - August, 2015