2 October 2009

Financial Intelligence Unit (FIU) keeps an eye on suspected transactions and is India’s anti-money laundering agency. FIU wants to scan real estate deals now as that is where maximum black money transactions take place.. FIU asked states to submit monthly data on registration of properties which will make it possible for FIU to process and analyse information relating to suspect financial transactions.

Real estate deals in the India involve unaccounted cash transactions leading to money laundering. At present the registering authorities have to send data to income tax authorities on property transactions only above Rs 30 lakh.but now the FIU has demanded data for all property transactions.FIU wants to  place real estate agents and brokers, besides a host of other entities, under reporting obligations.

India is on the way to become a member of the elite inter-governmental body `the Financial Action Task Force’, which has been founded by the G-7 group to develop policies to combat money laundering and terrorist financing, it is obliged to keep a tab on any such transactions that could be used as a means to launder money.