India’s financial intelligence unit (FIU) has issued new guidelines for effective checking of suspicious transactions in capital markets, insurance companies, online payment gateways, and crypto currency service providers. These guidelines are part of the country’s anti-money laundering and counter-terrorism financing regime. Financial institutions and intermediaries are required to share suspicious transaction reports with the FIU, which analyzes and shares them with investigative and intelligence agencies.
Artificial intelligence (AI) companies in India welcome the revised AI advisory issued by the IT ministry, which eliminates the need for government permission to deploy AI models and tools. The advisory applies to major social media intermediaries and emphasizes the labeling of under-tested and unreliable AI models. Startups and industry experts view this as a victory for innovation and a balanced approach to transparency and user awareness. However, they emphasize the importance of proactive dialogue to establish clear guidelines and address legal complexities in AI development.
Cyber security norms mandate insurers and intermediaries to adopt a risk-based approach and take measures to secure their systems and data. The Insurance Regulatory and Development Authority of India (IRDAI) has established an Inter-Disciplinary Standing Committee to address cyber security issues in the insurance sector.
