CAMS Exam: Egmont Group Principles for FIUs

Egmont Group Principles for FIUs

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Question

Under the Egmont Group Principles, information exchange among Financial Intelligence Units (FIUs) is conducted:

Answers

Explanations

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A. B. C. D.

D

https://egmontgroup.org/en/content/financial-intelligence-units-fius

Under the Egmont Group Principles, information exchange among Financial Intelligence Units (FIUs) is conducted in accordance with Answer B: freely, spontaneously, and upon request, on the basis of reciprocity.

The Egmont Group is an international organization consisting of FIUs from around the world. FIUs are responsible for collecting, analyzing, and exchanging information related to money laundering and terrorist financing. The Egmont Group aims to facilitate cooperation and information sharing among FIUs to combat these illicit activities effectively.

Answer A states that information exchange occurs without the expectation of reciprocity on how the information will be used. However, this is not entirely accurate. Reciprocity is indeed a crucial aspect of information sharing among FIUs. The principle of reciprocity means that when one FIU shares information with another, there is an understanding and expectation that the receiving FIU will reciprocate by sharing relevant information in return. Reciprocity ensures a fair and balanced exchange of information among FIUs.

Answer C states that information exchange occurs only if the status of the foreign FIU is related to law enforcement. This answer is incorrect because information exchange among FIUs is not limited solely to FIUs associated with law enforcement agencies. The Egmont Group encourages the exchange of information between FIUs regardless of their specific organizational status or affiliation. The primary focus is on the ability of the FIU to effectively perform its anti-money laundering and counter-terrorist financing functions.

Answer D suggests that there are set limits on the amount of financial and administrative information provided during information exchange. However, this is not a characteristic of Egmont Group Principles. While it is essential to respect data protection and privacy regulations, the Egmont Group emphasizes the importance of sharing comprehensive and relevant information to enhance the effectiveness of anti-money laundering and counter-terrorist financing efforts. The aim is to provide as much information as necessary and appropriate to support investigations and preventive measures.

In summary, under the Egmont Group Principles, information exchange among FIUs occurs freely, spontaneously, and upon request, based on the principle of reciprocity. The exchange is not limited to FIUs associated with law enforcement, and there are no specific limits on the amount of information shared, although data protection and privacy regulations must be respected.