What is acore function of a Financial Intelligence Unit (FIU)as described inFATF Recommendation 29?

FIUs act as central hubs for financial crime intelligence, receiving and analyzingSuspicious Activity Reports (SARs)and other data to support law enforcement.

Option A (Correct):FIUscollect, analyze, and disseminate financial intelligencerelated tomoney laundering and terrorist financing.

Option B (Incorrect):FIUsdo not prosecute cases—they refer cases tolaw enforcement agenciesfor prosecution.

Option C (Incorrect):FIUs analyze financial crime data butdo not develop surveillance technology.

Option D (Incorrect):FIUs share intelligencewith law enforcement and regulatory bodies, not directly with private companies.

Types of FIUs and Their Roles:

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Key FIU Responsibilities:

Collect Suspicious Activity Reports (SARs)from financial institutions.

Analyze financial transactionsto identify money laundering patterns.

Disseminate intelligence to law enforcement and regulatory authorities.