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

What is the goal of a Financial Intelligence Unit?

1. To manage government budget

2. To enhance financial products

3. To combat money laundering and other financial crimes

4. To oversee banking transactions

The correct answer is: To combat money laundering and other financial crimes

The correct choice focuses on the primary role of Financial Intelligence Units (FIUs), which is to combat money laundering and other financial crimes. FIUs are specialized government agencies responsible for the collection, analysis, and dissemination of financial information for the purpose of detecting and preventing illegal activities, including money laundering, terrorism financing, and other financial crimes. FIUs play a crucial role in the anti-money laundering framework by serving as the central point for receiving suspicious activity reports from financial institutions and reporting entities. They analyze the gathered data to identify patterns indicative of illicit activities, enabling law enforcement agencies to take appropriate actions. The effectiveness of FIUs in addressing financial crime is significant, as they contribute to the overall integrity of the financial system and help to protect economies from the negative impacts of such criminal activities. The other options, while relevant to different aspects of financial oversight or management, do not encapsulate the primary objective of an FIU. Managing a government budget, enhancing financial products, or overseeing banking transactions are important functions within the broader financial system but do not specifically address the core purpose of Financial Intelligence Units in fighting financial wrongdoing.