Legal Issues, Governance, and the IMF

artwork from cover of publication Financial Intelligence Units:
An Overview

June 2004, International Monetary Fund
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1.   Introduction
2.   Establishing an FIU
Steps in Establishing an FIU
  Key Decisions
  Consultations with Private Sector
  Financing an FIU
  Types of FIUs
    Administrative-type FIUs
    Law-enforcement-type FIUs
    Judicial or prosecutorial-type FIUs
    “Hybrid” FIUs
International Considerations
  The FATF Recommendations
  International Conventions
  Core Principles of Financial Sector Supervision
  Model Laws
Institutional Autonomy and Accountability
  Placement in Administration
  Appointment and Dismissal of FIU Head
  Reporting Arrangements
Organization and Staffing
  Internal Organization
  Liability of Staff and Confidentiality of Information
  Security Issues
3.   Core Functions of an FIU
Receiving Transaction Reports
  Who Must Report?
    Financial institutions
      Banks and insurance and securities companies
    Nonfinancial businesses and professions
      Real estate agents and dealers in precious metals and precious stones
      Lawyers, notaries, other independent professionals, and accountants
      Trust and company service providers
    What Is to Be Reported?
    Suspicious Transaction Reports
      What is a suspicion?
      What is criminal activity for purposes of the reporting obligation?
    Reports of Transactions Related to Terrorism Financing
    Reports of Transactions Above a Specified Amount
    Reports of Cross-Border Transportation of Currency and Bearer Negotiable Instruments
    Data from Other FIUs
    Rules Related to Reporting Entities
      Confidentiality of customer information
      Rules against “tipping off’
      Immunity of reporting entity and its staff for reports made in good faith
    Form and Contents of Reports to FIU
    Improving Flow and Quality of Reports
      Outreach actions
      Administrative sanctions
      Criminal sanctions
  Analyzing Reports
    Tactical Analysis
      The FIU’s own data
      Publicly available sources
      Government-held databases
      Additional information from original reporting entities and other entities
      Other FIUs
    Operational Analysis
    Strategic Analysis
Disseminating Reports
    Transmitting Reports for Investigation or Prosecution
    Sharing Information with Other Domestic Agencies
    International Information Sharing
      Legal basis for exchanges of information between FIUs
      Exchange of information
      Special arrangements for terrorist financing cases
      Egmont Group principles of information exchange in money-laundering cases
4.   Other FIU Functions
Monitoring Compliance with AML/CFT Requirements
    AML/CFT Supervision Arrangements
    FIU as AML/CFT Supervisor
    Information Exchange and Cooperation
Blocking Transactions and Freezing Accounts
Training for Staff of Reporting Institutions in Reporting and Other Requirements
Conducting Research
Enhancing Public Awareness of AML/CFT Issues
5.   Enhancing the Effectiveness of FIUs
Collecting Relevant Data
Identifying Opportunities for Improvement
6.   International Assessments of FIUs
Standards Regarding FIUs
Assessing Compliance with FIU-Related Standards
7.   Conclusions
I.   Statement of Purpose of the Egmont Group of Financial Intelligence Units
II.   Procedure for Being Recognized as an Egmont Group Financial Intelligence Unit (FIU)
III.   The Egmont Group: Operational Financial Intelligence Units of the World
IV.   Interpretive Note Concerning the Egmont Definition of a Financial Intelligence Unit
V.   Egmont Group: Principles for Information Exchange Between Financial Intelligence Units for Money-Laundering Cases
VI.   Egmont Group: Best Practices for the Improvement of Exchange of Information Between Financial Intelligence Units
VII.   FATF 40 Recommendations (2003)
VII.   FATF Special Recommendations on Terrorist Financing
IX.   International Convention for the Suppression of the Financing of Terrorism
X.   United Nations Convention Against Transnational Organized Crime
XI.   United Nations Convention Against Corruption
1.   FIU Power to Block Transactions and Freeze Accounts in Selected Countries
1.   Typical FIU Information Flow
2.   Typical FIU Organization Chart
1.   Administrative-Type FIUs
2.   Example of an Administrative-Type FIU: Slovenia’s Office for Money Laundering Prevention (OMLP)
3.   Law-Enforcement-Type FIUs
4.   Example of a Law-Enforcement-Type FIU: United Kingdom’s
National Criminal Intelligence Service (NCIS)
5.   Judicial or Prosecutorial-Type FIUs
6.   Egmont Group of Financial Intelligence Units
7.   Norms and Standards on FIUs in European Union
8.   FIUs in Very Small Developing Island Economies
9.   Sharing Information with Other Domestic Agencies
10.   Requesting Information from an FIU
11.   FIU.NET