🔹 Definition
A Financial Intelligence Unit (FIU) is a national agency responsible for receiving, analyzing, and disseminating information related to suspicious financial activities, particularly those involving money laundering, terrorist financing, and other financial crimes. FIUs act as the central node in a country’s anti-money laundering (AML) and counter-financing of terrorism (CFT) infrastructure, bridging financial institutions and law enforcement agencies.
FIUs operate independently and are structured according to each country’s legal and regulatory framework, but most follow international standards set by the Financial Action Task Force (FATF).
🔹 Frequently Asked Questions (FAQs)
Q1: What are the core functions of an FIU?
- Receive reports: Collect Suspicious Transaction Reports (STRs), Currency Transaction Reports (CTRs), and other filings from financial institutions
- Analyze data: Use internal tools and intelligence to detect patterns of illicit behavior
- Disseminate intelligence: Share findings with domestic enforcement agencies and international counterparts
- Promote compliance: Guide regulated entities on AML/CFT obligations and trends
Q2: What are some examples of FIUs around the world?
- FinCEN – United States
- AUSTRAC – Australia
- TRACFIN – France
- STRO – Singapore
- FIU-IND – India
- NCA UKFIU – United Kingdom
All are members of the Egmont Group, a global network of FIUs promoting information exchange and cooperation.
Q3: Who reports to an FIU?
- Banks, insurers, securities firms
- Money service businesses (MSBs)
- Real estate professionals, accountants, lawyers (in some jurisdictions)
- Crypto exchanges and Virtual Asset Service Providers (VASPs)
- Corporate service providers and high-value goods dealers (e.g., art, precious metals)
Q4: How does the FIU contribute to compliance programs?
- Provides typologies and red flags for suspicious activity
- Issues regulatory guidance to improve risk-based approaches
- Receives and reviews mandatory reports filed as part of institutional AML programs
- Participates in international intelligence cooperation, enabling faster action against cross-border financial crime
