Financial Intelligence Units (FIUs) are specialized agencies responsible for gathering, analyzing and sharing financial information to detect and combat money laundering, terrorist financing and other financial crimes. FIUs serve as the central hub for handling data related to suspicious financial activities within their respective jurisdictions. They can request information and receive reports from financial institutions and other entities that are required to disclose information about unusual or suspicious transactions - as well as public authorities and international cooperation partners - which help to identify and prevent the flow of illicit funds.

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The value of an FIU lies in its ability to assess suspicious reports with other financial intelligence and information it holds, allowing for a more comprehensive analysis of potential risks and illegal financial networks. While their primary role is handling and analyzing reports, FIUs may also have additional functions, such as postponing transactions, supervising entities’ compliance with Anti-Money Laundering (AML) / Counter Terrorist Financing (CTF) obligations, issuing AML/CFT guidance, providing training and coordinating national AML/CFT strategies at the policy level. 

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A fundamental element of an FIU’s effectiveness is its ability to cooperate and share intelligence with foreign counterparts and national institutions. In 1995, the Egmont Group was established to improve intelligence exchange between FIUs worldwide. Comprising over 100 FIUs, the Egmont Group ensures that its members adhere to key standards for cooperation and secure information exchange, primarily through the Egmont Secure Web, a dedicated platform for sharing intelligence. 

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According to the Financial Action Task Force (FATF), each country should have an FIU that operates independently, maintains confidentiality, is adequately resourced, and provides regular feedback to entities required to report suspicious activity. Through these standards, FIUs play an integral role in global AML/CFT efforts, enabling collaboration, securing financial systems and addressing financial crime with effective cross-border intelligence exchange.