The premier technical snoop wing under the Finance Ministry has rolled out a new system where all banking and financial institutions are mandated to file formatted Cross Border Wire Transfer Reports (CBTRs) exceeding Rs 5 lakh to it under the provisions of anti-money laundering laws.

According to a FIU report, all financial intermediaries and agencies operating in India need to send these reports to the FIU on a monthly basis and also in those cases where the funds movement are below the stipulated benchmark of Rs 5 lakh but look to be "suspicious or inter-related.

The Indian FIU is one of the few agencies of its kind in the world to have implemented this new mechanism, aimed to check black money, from the domestic economic channels to locations abroad.

"The FIU is aggressively working to enhance its new platform to analyse Illicit Financial Flows (IFF) from India which has been a major irritant when it comes to combating the menace of illegal funds. The job is being done aggressively and diligently," a senior official said, quoting the report.

The report, while commenting on the new action of the FIU, added, several studies, including those by the OECD (global economic body), indicate that developing countries had lost hundreds of millions of dollars every year through illicit flows, including through trade mis-invoicing.

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