Financial intelligence unit
FIUAlso called UKFIU, national FIU
A financial intelligence unit (FIU) is the national agency that receives suspicious activity reports and other disclosures from banks and regulated firms. It analyses them and passes intelligence to law enforcement. FATF standards require every country to have one. The UK FIU sits in the National Crime Agency, and FinCEN is the US FIU.
How it works
Regulated firms file reports with the FIU when they know or suspect money laundering or terrorist financing. The FIU combines those reports with other data, such as threshold reports and police records, to find networks and trends. It passes cases to police, tax and other authorities and exchanges information with foreign FIUs, often through the Egmont Group's secure network.
The FIU is the end point of a firm's reporting chain, so report quality matters. Clear, timely reports are more useful to investigators. FIUs also publish typologies and feedback that firms use to tune monitoring. In the UK, the FIU handles requests for a defence against money laundering, which can let a reporting firm proceed with a transaction.
The rules
Requires countries to establish an operationally independent FIU that receives and analyses suspicious transaction reports and disseminates the results.
All FATF member jurisdictionsSets common powers, information access and cooperation rules for EU FIUs, with the new EU AML authority supporting joint analysis between them.
EU member states and their FIUsRequires disclosure of known or suspected money laundering to the National Crime Agency, which houses the UK Financial Intelligence Unit.
UK regulated sector firms and nominated officersCommon questions
Is an FIU a law enforcement agency?
It depends on the country. FATF recognises administrative, law enforcement, judicial and hybrid models. The UK FIU is part of the National Crime Agency, while FinCEN in the US is an administrative bureau of the Treasury Department.
What is the Egmont Group?
The Egmont Group is the international body of FIUs. It provides a secure channel for FIUs to exchange intelligence and sets standards for that cooperation. Most national FIUs, including those of the UK, the US and EU member states, are members.
Does the FIU give feedback on reports?
FIUs give feedback mainly in aggregate, through annual reports, typologies and sector guidance. Case-specific feedback is limited, because intelligence goes to investigators and disclosure could prejudice an inquiry.
