BSE asks members to submit number of suspicious trade reports

Top bourse BSE on Friday asked its trading members to inform the exchange about the number of suspicious transactions reports filed with the government's Financial Intelligence Unit (FIU-IND) on a monthly basis.

"Trading members are hereby informed that as part of Prevention of Money Laundering Act (PMLA) compliance, trading members shall be henceforth required to report the number of STRs filed by them with the FIU-IND to the exchange on a monthly basis. The process of submission of the said details shall be intimated shortly," the BSE said in a circular on Friday.

As per anti-money laundering norms, brokers and other market entities are required to furnish all 'Suspicious Transaction Reports (STR)' to the FIU-IND through an online gateway.

STR reports help enforcement agencies check manipulative practices, fraud and scams, among other illegalities.

According to SEBI regulations, all entities under the regulator's jurisdiction are required to submit STRs electronically to the FIU.

The FIU-IND was set up by the government to co-ordinate as well as strengthen collection and sharing of financial intelligence inputs through national, regional and global networks in order to combat money laundering or related crimes.

Suspicious transactions are those which give rise to reasonable grounds to suspect involvement of proceeds of an offence, appear to be made in circumstances of unusual or unjustified complexity, appear to have no economic rationale or bonafide purpose as well as those giving rise to suspicion about financing of terrorism-related activities.