FIU-India Launches Advanced 2.0 Version of FINnet System to Combat Money Laundering and Terrorist Financing

The Financial Intelligence Unit (FIU) in New Delhi has taken a significant step in the fight against money laundering and terrorist financing with the operationalisation of its advanced 2.0 version of the information technology system. Equipped with artificial intelligence and machine learning tools, the upgraded system, known as FINnet 2.0, aims to enhance the agency’s capabilities in analyzing and disseminating financial intelligence.

According to a report for the 2022-23 fiscal year, the volume of data, particularly suspicious transaction reports, being flagged by banks and financial institutions to the FIU has been on the rise. This necessitated the need for a more efficient system for collection, processing, and dissemination of financial intelligence.

The FINnet 2.0 system is designed to leverage emerging technologies for superior analytical competencies, data quality improvement, compliance monitoring, and security enhancements. It enables the generation of risk scores for individuals, businesses, reports, networks, and cases to identify high-risk entities for immediate action.

One of the key features of the new system is its use of artificial intelligence and machine learning tools for advanced analytics. Additionally, natural language processing and text mining tools are employed to analyze textual inputs such as ‘grounds of suspicion’.

The FINnet 2.0 system comprises three sub-systems: FINGate for information collection, FINCore for analytics, and FINex for disseminating financial intelligence reports to investigative agencies. FINCore, in particular, utilizes artificial intelligence and machine learning to generate summaries and share suspicious transaction reports based on risk profiles.

To ensure the security and confidentiality of sensitive financial data, the upgraded IT system incorporates various measures such as end-to-end encryption, controlled access to content, logging of security incidents, and identity management solutions.

Overall, the implementation of FINnet 2.0 represents a significant milestone in the efforts to combat money laundering and terrorist financing in India. The advanced technological capabilities of the system are expected to strengthen the anti-money laundering and counter-terrorism financing capabilities of the FIU and its reporting universe.