FIU lab analyzes financial data to combat laundering

The Financial Intelligence Unit (FIU) in India has established a data analysis lab to combat money laundering and terrorist financing. This lab started operations in 2021 and focuses on analyzing currency declaration forms submitted by travelers arriving in India. The lab scrutinizes financial data from various sources to identify trends and potential threats. According to the FIU's 2023-24 report, the lab employs specialized staff and cutting-edge analytical tools to improve intelligence on financial crimes. Data from airports and customs stations is sent to the lab. This includes the names, passport numbers, and amounts of currency declared by individuals. The FIU uses this information to identify frequent travelers reporting foreign currency and cross-checks it against a database of suspicious transactions. Additionally, the FIU evaluates non-profit organizations (NPOs) that may be at risk of misuse. This analysis looks for NPOs making large cash deposits and withdrawals, which could indicate legal violations. The data helps identify NPOs that have received foreign funds without proper registration, thus breaching regulations. The lab also includes a new tool for analyzing bank statements from different financial institutions. This tool standardizes the information and highlights important transactions. It allows analysts to visualize the flow of funds, making it easier to detect suspicious activities. The FIU was established in 2004 and operates under the Ministry of Finance. Its efforts aim to enhance India's capabilities in fighting financial crime.