Cyber LawI4C authorized to get financial intelligence for cybercrime investigation under PMLA 2002.

May 18, 20250

I4C Now Authorized Under PMLA: Strengthening India’s Fight Against Cybercrime and Digital Money Laundering

Introduction

In a significant move to combat the growing threat of cyber-enabled financial crimes, the Ministry of Finance issued Notification G.S.R. 261(E) dated April 25, 2025, amending the Prevention of Money-Laundering Act, 2002 (PMLA). This amendment brings the Indian Cyber Crime Coordination Centre (I4C) under the list of authorized agencies entitled to receive information under Section 66(1)(ii) of the PMLA.

The inclusion of I4C is a pivotal step in integrating financial intelligence with cybercrime investigation, marking a new chapter in India’s digital law enforcement framework.

What Does the Amendment Say?

The notification amends the earlier G.S.R. 381(E) dated June 27, 2006, to include I4C as an authorized agency to receive sensitive financial intelligence from the Financial Intelligence Unit – India (FIU-IND). The amendment was made in public interest, with the objective of enabling I4C to access vital financial data required to trace, analyze, and act upon money laundering linked to cybercrimes.

Understanding Section 66(1)(ii) of PMLA

Section 66(1)(ii) of the PMLA empowers the Director of FIU-IND or any officer authorized by him to share information received or obtained under the Act with:

“…such officers of the Central Government or of a State Government or of a local authority as may be authorised in this behalf by the Central Government by a general or special order made in this behalf, if in the opinion of the Director such disclosure is necessary in the public interest.”

This section provides the legal foundation for inter-agency information sharing, allowing financial intelligence gathered under PMLA to be passed on to other government or investigative bodies for further action.

By being notified under this section, I4C is now officially recognized as a recipient agency of financial intelligence critical to cybercrime investigations.

Why This Matters: Impact on I4C’s Capabilities

The Indian Cyber Crime Coordination Centre (I4C), an initiative of the Ministry of Home Affairs, coordinates efforts across state police and law enforcement to tackle cybercrime. With this new status under PMLA, I4C can now:

Access Real-Time Financial Intelligence: I4C can directly receive Suspicious Transaction Reports (STRs), Cash Transaction Reports (CTRs), and other financial data from FIU-IND.

Trace Financial Trails: This is particularly crucial in crimes such as phishing scams, online frauds, ransomware attacks, and cryptocurrency-based laundering.

Accelerate Investigations: Direct access to financial intelligence removes delays in inter-agency coordination, enabling faster and more effective responses to cybercrime incidents.

Improve Policy Making: The patterns and trends observed from financial intelligence can inform better policy design and risk mitigation strategies.

Support Multi-Agency Collaboration: I4C now stands on par with other enforcement agencies like the CBI, ED, and NIA in terms of intelligence access, ensuring seamless collaboration.

A Strategic Move Toward Integrated Cyber Law Enforcement

Cybercrime today is rarely confined to digital boundaries; financial motives often drive these crimes, with proceeds laundered through sophisticated channels including crypto-assets and offshore accounts. The inclusion of I4C under Section 66(1)(ii) is a forward-looking, systemic response to this reality.

It reinforces the understanding that combating cybercrime requires both digital forensics and financial trail analysis, and this amendment bridges the two.

Conclusion

This strategic amendment by the Ministry of Finance reflects the Indian government’s commitment to fortifying its digital and financial security infrastructure. For legal professionals, enforcement agencies, and compliance officers, this development signals an era of tighter coordination between cyber and financial law enforcement. At CorpoTech Legal, we recognize the growing intersection between technology, finance, and law. This amendment is not only a legislative update but a critical enabler of effective cybercrime investigation and digital justice.

 

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