FIU

Financial Intelligence Unit

A central, national agency responsible for receiving, analyzing, and disseminating financial information to combat money laundering, terrorist financing, and other financial crimes. FIUs play a crucial role in a country’s anti-money laundering (AML) and counter-terrorist financing (CFT) framework by serving as a link between the financial sector and law enforcement agencies.

The main functions of an FIU include:

1. Receiving and collecting reports of suspicious transactions from financial institutions and other reporting entities, such as Suspicious Activity Reports (SARs) and Currency Transaction Reports (CTRs).
2. Analyzing the reported information to identify trends, patterns, and potential cases of money laundering, terrorist financing, or other financial crimes.
3. Disseminating the relevant information and analysis to domestic and international law enforcement agencies, regulatory authorities, and other FIUs for further investigation and action.
4. Providing guidance and feedback to reporting entities to help them detect and report suspicious activities more effectively.
5. Cooperating with domestic and international partners to exchange information and coordinate efforts to combat financial crimes.

FIUs are typically established by national legislation and operate independently or as part of a larger government agency, such as the Ministry of Finance, Central Bank, or law enforcement agency. In the United States, the FIU is Financial Crimes Enforcement Network (FinCEN), a bureau of the Department of the Treasury.

The Egmont Group, an international organization of FIUs, promotes cooperation and information sharing among its member FIUs to combat money laundering, terrorist financing, and other financial crimes on a global scale. As of 2021, the Egmont Group has 166 member FIUs from various countries and jurisdictions worldwide.