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Wire transfer agents under Government of India’s scanner

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Because of the fears of money laundering and misuse of the electronic money transfer facility by terror outfits, the Ministry of Home Affairs and the Financial Intelligence Unit (FIU) have sought for a detailed verification of all sub-agents of wire transfer companies such as the Western Union.

The Reserve Bank of India (RBI) would take over the verification part. The Ministry of Finance have agreed to the proposal in principle of the Ministry of Home Affairs. During the recent months, Both RBI and finance ministry want the process to initially cover new sub-agents and then take up existing points of presence. Whether the exercise will cover just new sub-agents or all existing players is unclear at the moment but the security establishment seems to have an upper hand in the decision. The Government of India has beefed up vigil on terror financing with FIU coming across over 800 suspicious transactions besides reports from intelligence agencies of global outfits and financiers investing in the Indian stock markets to use the funds not just in India but also in other parts of the world.

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