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

What is the primary function of a Financial Intelligence Unit (FIU)?

1. To regulate financial institutions globally

2. To analyze financial information related to money laundering

3. To monitor stock market activities

4. To provide loans to small businesses

The correct answer is: To analyze financial information related to money laundering

The primary function of a Financial Intelligence Unit (FIU) is to analyze financial information related to money laundering and other financial crimes. FIUs serve as a critical component in the global fight against money laundering and terrorist financing. They collect and analyze data submitted by financial institutions and other obligated entities regarding suspicious transactions. Through this analysis, FIUs identify patterns, trends, and potential criminal activities linked to money laundering. They then disseminate this information to law enforcement agencies and other competent authorities, assisting in investigations and prosecutions related to financial crimes. This analytical role is essential for detecting illicit financial flows and enhancing the overall effectiveness of anti-money laundering efforts. In contrast, the other options do not align with the core responsibilities of an FIU. Regulating financial institutions globally is a responsibility more aligned with international regulatory bodies rather than a specialized analytical unit. Monitoring stock market activities pertains to securities regulators, not FIUs. Providing loans to small businesses falls under the purview of financial institutions and lenders, which is not a function associated with FIUs.