Frequently Ask Questions
Financial Intelligence Units (FIUs) are central to combating financial crimes. Herein are the most frequently asked questions and responses thereto;
• FIUs are national agencies responsible for receiving, analyzing, and disseminating financial information related to suspected criminal activities, especially money laundering, terrorist financing, and proliferation financing.
• Money laundering is the process of disguising the origins of illegally obtained money by channelling it through legitimate financial systems. • It typically involves three stages: o Placement: Introducing illicit funds into the financial system. o Layering: Complex transactions to obscure the origin. o Integration: Reintroducing the funds as legitimate assets.
• Terrorist financing involves providing funds or financial services with the intent to support terrorist acts, regardless of whether the money is from legal or illegal sources.
• Suspicious indicators include: o Unusual transaction patterns o Large cash deposits without clear origin o Structuring transactions to avoid reporting thresholds o Use of shell companies or offshore accounts
• Implement anti-money laundering (AML) controls, including: o Know Your Customer (KYC) procedures o Staff training o Record keeping o Reporting suspicious transactions
• Accountable institutions (SCHEDULE 1 of the MLPCA, as amended) such as banks, legal professionals, casinos, and real estate agents are typically required to report suspicious activities under national AML laws.
• FATF (Financial Action Task Force): An international body that sets standards to combat money laundering and terrorist financing. • Egmont Group: A global network of FIUs that facilitates cooperation and intelligence sharing.
• Reports are encrypted and sent via email to [email protected]