CAMS Question #948: Real Exam Question with Answer & Explanation

The correct answer is A. collaborating with law enforcement agencies, financial institutions, and other stakeholders to D. facilitating the exchange of information between the public and private sectors.. This question identifies the two primary functions of a Financial Intelligence Unit (FIU), distinguishing them from roles belonging to regulators, lawmakers, or financial service providers.

Question

The primary roles of a Country's Financial Intelligence Unit (FIU) include: (Select Two.)

Options

Acollaborating with law enforcement agencies, financial institutions, and other stakeholders to
Bconducting examinations of financial institutions to ensure compliance with anti-money laundering
Cengaging in providing financial services, including banking and investment activities, to the public
Dfacilitating the exchange of information between the public and private sectors.
Eenacting legislation regarding the operations of financial institutions.

Explanation

This question identifies the two primary functions of a Financial Intelligence Unit (FIU), distinguishing them from roles belonging to regulators, lawmakers, or financial service providers.

Common mistakes.

B. Conducting AML compliance examinations of financial institutions is a supervisory function performed by regulatory agencies such as central banks or dedicated financial regulators, not by FIUs.
C. Providing banking or investment services to the public is a commercial financial services function entirely outside the mandate of an FIU.
E. Enacting legislation is a legislative branch function and is not within the operational or statutory remit of an FIU.

Concept tested. Primary roles and mandate of a Financial Intelligence Unit

Reference. https://egmontgroup.org/about/what-is-an-fiu/

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