AFinancial Intelligence Unit (FIU)acts as thecentral hub for AML/CFT intelligencein a country.
Option A (Correct):FIUs collect, analyze, and disseminate financial intelligencerelated tosuspicious transactionsto law enforcement and regulators.
Option B (Incorrect):FIUsdo not prosecute cases; theyrefer cases to law enforcementfor prosecution.
Option C (Incorrect):FIUsanalyze databut donot develop surveillance technology.
Option D (Incorrect):FIUs share intelligencewith authorized entities, butnot real-time criminal datawith the private sector.
Types of FIUs:
FIU Model
Description
Example
Administrative FIU
Operates under agovernment agency or central bank.
FinCEN (USA), AUSTRAC (Australia)
Law Enforcement FIU
Operates within alaw enforcement body.
UK NCA (UK), IMPA (Israel)
Judicial FIU
Operates within ajudicial authority.
Belgium CTIF-CFI
Why FIUs Are Important:
They bridge the gap between banks, regulators, and law enforcement.
They ensure confidential handling of SARs.
They support domestic and international cooperation in AML/CFT efforts.
[Reference:, FATF Recommendation 29 (FIUs), Egmont Group Guidelines on FIU Cooperation, EU Directive on the Role of FIUs, , , , ]
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