Centre expands surveillance to cooperative sector to combat financial crimes

Thiruvananthapuram: The central government has decided to extend surveillance measures, previously limited to private and public sector banks, to include cooperative sectors in Kerala. The new regulations will oversee financial transactions within multi-state credit groups under central control, marking a step towards enhanced monitoring of the sector against money laundering and financial terrorism.

A circular has been issued outlining the new guidelines, which will be enforced by the Central Financial Intelligence Unit (CFIU). The monitoring will focus on large financial transactions, including those involving cash and suspicious activities. However, the new regulations are not yet applicable to cooperative societies within the state.

The decision follows a comprehensive set of recommendations prepared by the intelligence department, which were submitted to the Registrar of the Central Cooperative Sector. The guidelines outline specific criteria for surveillance, including transactions above certain thresholds and activities.

Key areas include:

• Cash transactions of ₹10 lakhs or more
• Detection of counterfeit currency transactions
• Non-profit organisations with transactions exceeding ₹10 lakhs
• Suspicious transactions should be reported within seven days
• Cash transactions exceeding ₹5 lakhs with people abroad 

This expanded surveillance initiative is aimed at strengthening financial oversight and preventing illicit financial activities within the cooperative sector.