New Delhi, May 2 (KNN) The Finance Ministry is considering a proposal to require banks and fintech companies to appoint designated nodal officers or key contact points to liaise with law enforcement agencies (LEAs).

This issue was discussed at a workshop organised jointly by the Department of Financial Services and the Indian Cyber Crime Coordination Centre on Tuesday in New Delhi.

The half-day interactive workshop brought together LEAs, startups, fintech firms and other ecosystem partners to foster collaboration in addressing challenges like cybersecurity, financial fraud prevention, regulatory compliance and promoting innovation.

Discussions covered topics such as frauds perpetrated through mule accounts, fintech merchant abuse and potentially developing an indigenous anti-money laundering system tailored to the Indian context.

Key points raised included the role of technology in increasing financial inclusion, strategies to control money mules, real-time data monitoring, geotagging transactions, maintaining registries of suspicious banking correspondents and fraudsters, auditing digital KYC, and streamlining account freezing processes.

Enhancing data privacy, modernising digital infrastructure and emerging cybercrime trends were also deliberated.

State police departments from Gujarat, Haryana and Uttarakhand shared best practices on curbing cybercrime alongside the Indian Cyber Crime Coordination Centre.

Fintech associations presented operational challenges faced by their member companies.

Addressing the workshop, Department of Financial Services Secretary Vivek Joshi highlighted fintechs' contributions to economic growth while emphasising the need for greater public-private collaboration to fully harness the sector's potential, reported BL.

He noted fintechs tend to draw more regulatory and law enforcement attention as their businesses scale over time.

The workshop was attended by around 60 fintech firms, four fintech associations, 23 state police departments and federal agencies like the CBI, Enforcement Directorate and FIU-IND, apart from regulators and ministries.

(KNN Bureau)