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:
- Placement: Introducing illicit funds into the financial system.
- Layering: Complex transactions to obscure the origin.
- 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:
- Unusual transaction patterns
- Large cash deposits without clear origin
- Structuring transactions to avoid reporting thresholds
- Use of shell companies or offshore accounts
- Implement anti-money laundering (AML) controls, including:
- Know Your Customer (KYC) procedures
- Staff training
- Record keeping
- 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]
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