Which statement identifies one of the duties of a government Financial Intelligence Unit?

Question

Options

• AIt serves as the central agency for the receipt of disclosures filed by reporting entities.
• BIt administers and enforces economic and trade sanctions based on a government's foreign policy
• CIt supervises and regulates banking institutions to ensure the safety and soundness of the
• DIt prosecutes suspected money launderers and terrorist financiers based on financial institution

• A
  85% (17)
• C
  5% (1)
• D
  10% (2)

Explanation

A financial intelligence unit (FIU) is a national body or government agency that collects, analyzes, and disseminates financial information related to potential financial crimes, such as money laundering and terrorist financing. One of the core functions of an FIU is to receive disclosures filed by reporting entities, such as banks, money service businesses, casinos, and other obliged entities, that are required to report suspicious or unusual financial activity. These disclosures, also known as suspicious activity reports (SARs) or suspicious transaction reports (STRs), provide valuable intelligence for the FIU and other competent authorities to identify and investigate financial crimes and trace illicit funds. The other statements do not describe the duties of an FIU, but rather the roles of other agencies or bodies, such as the Office of Foreign Assets Control (OFAC) in the US, which administers and enforces economic and trade sanctions, or the Financial Action Task Force (FATF), which sets international standards for anti-money laundering and counter-terrorist financing (AML/CFT) supervision and regulation.

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