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

What is one of the primary functions of a Financial Intelligence Unit?

1. To create new regulations

2. To act as a financial advisor

3. To receive financial information from various sources

4. To manage global financial markets

The correct answer is: To receive financial information from various sources

One of the primary functions of a Financial Intelligence Unit (FIU) is to receive financial information from various sources. This role is crucial in the fight against money laundering and terrorist financing. FIUs serve as the national center for the collection, analysis, and dissemination of financial intelligence. They receive suspicious transaction reports and other relevant information from financial institutions and other reporting entities. This information is then analyzed to identify potential money laundering activities and other financial crimes. Receiving financial information enables FIUs to play an integral role in gathering data that can lead to further investigations by law enforcement authorities. This function enhances the country's overall ability to detect and prevent financial crime by ensuring that crucial information is centralized and can be effectively analyzed and acted upon. The other options do not accurately represent the primary role of an FIU. Creating new regulations is typically the responsibility of regulatory bodies or government agencies rather than FIUs. Acting as a financial advisor does not align with the primary mission of FIUs, which is focused on compliance and intelligence rather than providing financial advice. Lastly, managing global financial markets is outside the scope of FIUs, as their emphasis is on domestic financial intelligence rather than broader market management.