In which two ways does a government Financial Intelligence Unit interact with public and private sectors? (Choose two.)
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A. B. C. D.CD
http://pubdocs.worldbank.org/en/834721427730119379/AML-Module-2.pdfThe answer choices provided in the question relate to the role of a Financial Intelligence Unit (FIU) in interacting with public and private sectors. FIUs are governmental agencies responsible for receiving, analyzing, and disseminating financial intelligence related to money laundering, terrorist financing, and other financial crimes. They act as a central point for the receipt of suspicious activity reports (SARs) and other relevant financial information from various reporting entities, including financial institutions and non-bank institutions.
Two ways in which an FIU interacts with the public and private sectors are:
C. It receives and analyzes disclosures filed by financial and non-bank institutions: One of the primary roles of an FIU is to receive and analyze SARs and other relevant financial information filed by financial institutions and non-bank institutions. Reporting entities are required to file SARs and other disclosures with the FIU when they detect any suspicious activity in their transactions. The FIU is responsible for analyzing the information received, identifying potential money laundering and terrorist financing activities, and disseminating the relevant information to competent authorities.
D. It disseminates information and the results of its analysis to competent authorities: Another important role of an FIU is to disseminate the information and results of its analysis to competent authorities, such as law enforcement agencies, regulatory bodies, and other intelligence agencies. The FIU acts as a central point of contact for receiving and disseminating financial intelligence related to money laundering and terrorist financing activities. By sharing relevant information with competent authorities, the FIU helps in preventing and detecting financial crimes, identifying suspects, and prosecuting offenders.
Answer choices A and B are incorrect:
A. It governs the methods of investigation used by competent authorities: While an FIU may provide guidance and advice to competent authorities on the methods of investigation, it does not govern the methods of investigation used by them.
B. It mediates disputes between financial institutions and investigative authorities: An FIU does not mediate disputes between financial institutions and investigative authorities. Its role is limited to receiving and analyzing financial information, identifying potential money laundering and terrorist financing activities, and disseminating the relevant information to competent authorities.