Financial Crime World

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Chile Establishes Financial Intelligence Unit to Combat Money Laundering and Terrorist Financing

Santiago, Chile

Chile has taken a significant step forward in strengthening its anti-money laundering (AML) and counter-terrorism financing (CFT) regime by establishing a financial intelligence unit (FIU), as required by the Financial Action Task Force (FATF).

What is the FIU?

The FIU will serve as a central agency for receiving disclosures filed by reporting entities, including:

  • Suspicious transaction reports
  • Cash transaction reports
  • Wire transfers reports
  • Other threshold-based declarations

The unit will also analyze this information to identify money laundering and terrorist financing related trends and patterns, and disseminate its findings to relevant competent authorities.

Access to Information

The FIU will have access to a wide range of financial, administrative, and law enforcement information, including:

  • Information from open or public sources
  • Commercially held data
  • Additional information from reporting entities as needed

The unit’s analysis will focus on adding value to the information received and held by the FIU, using analytical software to process information more efficiently and establish relevant links. However, human judgment will also play a crucial role in the analysis process.

Dissemination of Information

The FIU will have the authority to disseminate information spontaneously or upon request to competent authorities, using dedicated, secure, and protected channels. It will also be able to:

  • Respond to information requests from competent authorities
  • Engage independently with other domestic or foreign counterparts on the exchange of information

Operational Independence

To ensure its operational independence, the FIU will have rules in place governing the security and confidentiality of the information it receives, processes, holds, and disseminates. Its staff members will have:

  • Necessary security clearance levels
  • Understanding of their responsibilities in handling and disseminating sensitive and confidential information

Funding and Resources

The Chilean government has committed to providing the FIU with adequate financial, human, and technical resources to carry out its mandate effectively, free from any undue influence or interference.

Membership in Egmont Group

The unit is also expected to apply for membership in the Egmont Group, a global network of financial intelligence units that facilitates the exchange of information on money laundering and terrorist financing cases.

Impact

The establishment of the FIU is seen as a major step forward in Chile’s efforts to combat money laundering and terrorist financing, and is expected to enhance the country’s AML/CFT regime.