Certified Anti-Money Laundering Specialist Certification (CAMS) Practice Exam

What does an FIU do with the information it receives?

1. It processes and disseminates the information to regulatory bodies

2. It only retains the information for statistical analysis

3. It gives the information to financial institutions for compliance

4. It presents the information in public forums for transparency

The correct answer is: It processes and disseminates the information to regulatory bodies

An FIU, or Financial Intelligence Unit, plays a critical role in combating money laundering and other financial crimes. The main function of an FIU is to process and analyze the information it receives regarding suspicious activities, particularly financial transactions, and disseminate that information to appropriate regulatory bodies or law enforcement agencies. This processing involves examining the data for patterns or flags that might indicate illicit activity and ensuring that the information is actionable for those entities that have the authority to investigate further or take regulatory action. While the other options touch on aspects related to data handling, they lack the comprehensive role that the FIU plays in disseminating intelligence to the right authorities. For example, retaining information solely for statistical analysis does not fulfill the FIU's primary function of supporting investigations. Similarly, directly giving information to financial institutions for compliance, or presenting it in public forums, does not capture the essential task of an FIU in terms of analysis and action-oriented communication with law enforcement and regulatory bodies. Thus, the emphasis on processing and disseminating reflects the integral role that FIUs have in proactive financial crime prevention.