Core Function of a FIU

C

The core function of a Financial Intelligence Unit (FIU) is to receive, analyze, and transmit reports of suspicions related to money laundering, terrorist financing, and other financial crimes. This means that an FIU is responsible for collecting, analyzing, and disseminating financial intelligence to relevant authorities in order to prevent and combat financial crimes.

Answer option A, "Receive, analyze, and transmit reports of suspicions identified and filed" is correct because it accurately describes the primary function of an FIU. The FIU receives reports of suspicious financial transactions from reporting entities such as banks, money services businesses, and other financial institutions, as well as from law enforcement agencies and other sources. These reports are then analyzed by the FIU to identify potential money laundering, terrorist financing, or other financial crimes.

Once the FIU has identified suspicious transactions, it transmits this information to relevant authorities such as law enforcement agencies, regulatory bodies, and other FIUs both domestically and internationally. This enables these agencies to investigate and take action against financial crime.

Answer option B, "Set international standards for AML and terrorism financing for law enforcement" is not correct because this is the role of international bodies such as the Financial Action Task Force (FATF) rather than individual FIUs. FIUs are responsible for implementing the international standards set by organizations like the FATF in their respective jurisdictions.

Answer option C, "Coordinate, investigate, and prosecute money laundering and terrorism financing" is not correct because this is the role of law enforcement agencies rather than FIUs. While FIUs may provide financial intelligence to assist in investigations, they do not have the authority to investigate or prosecute financial crimes themselves.

Answer option D, "Pursue the eradication of money laundering and terrorism financing as the main law enforcement function" is not correct because while the eradication of financial crimes is an important goal, it is not the primary function of an FIU. The core function of an FIU is to receive, analyze, and transmit reports of suspicious financial transactions.