Module: General Practice
Q92: The Financial Intelligence Unit - India (FIU-IND) plays a central role in the AML architecture. Which of the following statements accurately describe its institutional structure and powers under the PMLA, 2002?
FIU-IND is an independent administrative body that reports directly to the Economic Intelligence Council (EIC) headed by the Finance Minister, not to the Reserve Bank of India.
Unlike the Enforcement Directorate (ED), the FIU-IND is not a law enforcement agency; it does not have the power to arrest individuals or prosecute crimes directly.
Under Section 13 of the PMLA, the Director of FIU-IND is empowered to impose monetary penalties and issue warnings to Reporting Entities (banks) for failure to comply with reporting obligations.
FIU-IND officers are legally classified as "Police Officers" and can conduct custodial interrogations of money laundering suspects.
Unlike the Enforcement Directorate (ED), the FIU-IND is not a law enforcement agency; it does not have the power to arrest individuals or prosecute crimes directly.
Under Section 13 of the PMLA, the Director of FIU-IND is empowered to impose monetary penalties and issue warnings to Reporting Entities (banks) for failure to comply with reporting obligations.
FIU-IND officers are legally classified as "Police Officers" and can conduct custodial interrogations of money laundering suspects.
✅ Correct Answer: B
The correct answer is Option B. FIU-IND reports to EIC, is an intelligence body (not law enforcement), and can penalize banks.
Its officers are not police, making statement 4 incorrect.
FIU roles are central to the IIBF AML KYC Exam 2026.
Its officers are not police, making statement 4 incorrect.
FIU roles are central to the IIBF AML KYC Exam 2026.