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

What type of body is a Financial Intelligence Unit classified as?

1. A financial regulatory body

2. An intelligence-gathering law enforcement body

3. A central banking authority

4. A private financial institution

The correct answer is: An intelligence-gathering law enforcement body

A Financial Intelligence Unit (FIU) is fundamentally categorized as an intelligence-gathering law enforcement body. Its primary role is to receive, analyze, and disseminate financial information to combat money laundering and terrorist financing. The key function of an FIU is to provide authorities with actionable intelligence that can be used in law enforcement investigations. It serves as a crucial link between financial institutions and law enforcement agencies, ensuring that suspicious activities reported by banks and other entities lead to appropriate investigations and actions. In this context, FIUs operate under both national and international regulatory frameworks, often cooperating with other countries to share intelligence concerning money laundering and terrorist financing, thereby playing a vital role in the global financial system's integrity. Their classification as intelligence-gathering entities highlights their focus on analyzing data and supporting law enforcement rather than merely regulating financial institutions or managing monetary policy.