Guidelines on the procedure to be followed for seeking information from Financial Intelligence Unit-India (FIU-IND) and confidentiality to be maintained in handling such information - Income Tax - F. No. 290/27/2013-Dir (Inv.IV)/291

F. No. 290/27/2013-Dir (Inv.IV)/291 Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes ARA Centre (Ground Floor), E-2, Jhandewalan Extension, New Delhi - 110055 6th May, 2015 OFFICE MEMORANDUM Sub.: Guidelines on the procedure to be followed for seeking information from Financial Intelligence Unit-India (FIU-IND) and confidentiality to be maintained in handling such information 1. Financial Intelligence Unit-India (FIU-IND) is the designated authority under Prevention of Money laundering Act, 2002 (PMLA) to receive information from different reporting entities. Accordingly, it has a database of, inter alia, bank accounts and transactions therein, transaction in securities, insurance premium paid on policies etc. 2. FIU-IND shares information spontaneously and on request basis with, inter alia, CBDT under Section 66 of PMLA. Also, Central Board of Direct Taxes (CBDT) and FIU-IND have executed Memorandum of Understanding (MOU) for exchange of information. On the basis of these, Income Tax authorities under CBDT can seek information from FIU-IND for both domestic bank accounts etc as well as those from foreign countries. Such information may be extremely useful for recovery from, bank accounts hitherto unknown to Income Tax authorities or bringing to tax the transactions that might have been done through undisclosed bank accounts). 3. It has come to the notice of the Board that there is considerable lack of awareness in the matter of procedure to be followed for and confidentiality to be maintained in seeking information from FIU-IND. Certain instances have come to notice where the field officers have issued notice under section 133(6) of the Income Tax to requisition information from the FIU. This is a matter of great concern and puts the CBDT in a very embarrassing position, the fact that repeated instructions have been given with respect to the procedure to. be followed for seeking information makes the lackadaisical approach of the field officers in dealing these matters even more glaring. Many a times request for exchange of information with FIU-IND in the matter of recovery of tax demands under direct tax laws is addressed to Deputy Secretary/ Director (Investigation IV), Central Board of Direct Taxes, ARA Centre (Ground Floor, E-2, Jhandewalan Extension, New Delhi - 110055. Instances have also come to notice of AO/Investigating Officer disclosing/sharing the source of information and taking the name of FTU with assessee in the letters/notices. 4. For the purpose of exchange of information between CBDT and FIU-IND, the following two officers have been designated as Nodal Officers, namely (i) Director of Income Tax (Recovery), Mayur Bhawan (6th Floor), Connaught Circus, New Delhi- 110001 (Only for recovery of demands) (ii) Deputy Secretary/ Director (Investigation IV), Central Board of Direct Taxes, ARA Centre (Ground Floor), E-2, Jhandewalan Extension, New Delhi -110055 (For investigation to obtain the details of enquiries/assessments) 4.1. The Director of Income Tax (Recovery), Mayor Bhawan (6th Floor), Connaught Circus, New Delhi -110001, is the Nodal Officer on behalf of CBDT for exchange of information with FIU-IND in the matter of recovery of tax demands under direct tax laws. Accordingly, Income Tax authorities the field formations, intending to seek information from FIU-IND about bank accounts or transactions therein/ insurance policies and premiums paid/ securities transactions for the purpose of recovery of demands, shall send their requests addressed to the Director of Income Tax (Recovery), Mayur Bhawan (6th Floor), Connaught Circus, New Delhi - 110001 who will take up the matter with the FIU. Such requests shall be made only after obtaining approval from an officer of the level of Joint Commissioner of Income Tax or above if the requesting officer is of a level below Joint Commissioner / Joint Director of Income Tax. 4.2. FIU-IND will send responses to all requests for information for the purpose of recovery of taxes to the Nodal Officer, namely, the Director of Income Tax (Recovery), through FINNET or otherwise, who will disseminate it further to requesting officers. FIU will not respond to other officers. 5. The Deputy Secretary/ Director (Investigation IV), ARA Centre (Ground Floor), E-2, Jhandewalan Extension, New Delhi -110055, is the Nodal Officer on behalf of CBDT in the matter of exchange of information between CBDT and FIU-IND in all other matters (other than recovery matters as mentioned in Para 4.1supra), e.g., verification/ investigation of bank accounts etc in course of assessment proceedings, pre- and post-search enquiries etc. Requests for information in such matters may be made either online or offline. Hence all such requests be made to DS(Inv.IV) and not sent to FIU directly, 6. Information may be sought from foreign countries also through FIU-IND, which represents Government of India to Egmont group based in the Hague. To seek information from foreign countries through FIU-IND, requests, may be made to the Deputy Secretary/ Director (Investigation IV), ARA Centre (Ground Floor), E-2, Jhandewalan Extension, New Delhi - 110055, DS (Inv IV) will take up the matter with FIU. 6.1. It may be noted by all Income tax authorities in field formations that information received from FIU-IND is confidential and utmost confidentiality must be maintained in handling and custody of such information. It should be protected from unauthorised use and proliferation and kept confidential. The information received from FIU-IND, domestic as well as foreign, shall be treated as intelligence and the same may be further developed by the department s own investigation. In consequence, FIU IND will not be mentioned as the source of information in any pjace or occasion or document like assessment order/ correspondence etc, except when required by a competent court of law. In the assessment orders and other communications AOs/ AddlCsIT/ CsIT or DDsIT/ Addl. DsIT/ DsIT may not refer to the source of the information and name of FIU should not be mentioned. It may be mentioned that credible information/source information has been received to the effect that....... 7. These guidelines may be brought to the notice of all officers for strict compliance. 8. This issues with the approval of the Chairman, CBDT and Member (Inv). (Neetika Bansal) Joint Commissioner of Income tax (OSD) Investigation-IV, CBDT .