GOVERNMENT OF INDIA
Ministry of Finance
DEPARTMENT OF REVENUE
UNSTARRED QUESTION NO. 1252
TO BE ANSWERED ON TUESDAY, THE 9TH MARCH, 2010 PHALGUNA 18, 1931 (SAKA)
Overseas Sources of Investment
1252. SHRI RAJEEV CHANDRASEKHAR:
Will the Minister of FINANCE be pleased to state:
(a) whether to trace overseas sources of investment into India, Government has proposed to create a specialized information tracking system on the lines of Australian Transaction Reports and Analysis Centre;
(b) if so, whether the Australian agency offers expertise to track down money laundering and terrorism financing channels;
(c) whether the proposed agency would also collect and analyse data on the abuse of Double Taxation Avoidance Agreement by overseas investors;
(d) if so, whether Government proposes to follow the Australian information tracking system; and
(e) if so, by when that is likely to be done?
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI S.S. PALANIMANICKAM)
(a): The Government of India has set up Financial Intelligence Unit-India (FIU-IND) to receive information relating to certain types of transactions including suspicious financial transactions from the financial sector, analyse received information and disseminate information in appropriate cases to relevant intelligence/ law enforcement agencies. FIU-IND does not undertake any investigation. It also does not directly trace overseas sources of investment into India.
(b): FIU-IND has been interacting with Australian Transaction Reports and Analysis Centre (AUSTRAC) and has made use of their experience in setting up and operationalising FlU-IND.
(c) to (e): FIU-IND does not propose to collect directly and analyse data on the abuse of Double Taxation Avoidance Agreement by overseas investors.