Financial Crime World

Financial Intelligence Unit (FIU) in Chile: A Critical Component of the Financial Sector

The Financial Intelligence Unit (FIU) plays a vital role in Chile’s financial sector, serving as a frontline defense against financial crime by centralizing the investigation and response to risk events and other issues relevant to supervisory authorities.

What is an FIU?

A bank FIU in Chile may consist of multiple investigative teams specializing in analyzing customer data indicative of money laundering or terrorism financing, sanctions evasion, bribery, and corruption. Some FIUs may also investigate fraud cases. Banks with operations in multiple countries often have a Group FIU performing a similar role for the entire group.

The Investigative Role of an FIU

The primary role of an FIU in Chile is to identify, investigate, and mitigate financial crime risks. To carry out financial crime investigation, a FIU collects and analyzes customer data, examining key AML/CFT information, including internal watchlists and previous investigations generated by Know Your Customer (KYC) and Anti-Money Laundering (AML) measures.

Core Functions of an FIU

  • Financial Crime Investigations: Prior to submitting SARs to relevant authorities, FIUs investigate risk events to determine whether there has been a breach of the law – and whether a law enforcement investigation is needed.
  • AML/CFT Reporting: FIUs act as intermediaries between banks and authorities, determining whether it is appropriate to submit a suspicious activity report when transaction screening solutions detect certain trigger activities.
  • Supporting Investigations: When FIUs complete internal investigations and submit SARs to regulatory authorities, they may be required to share further information with the authorities to support ongoing investigations.
  • Partnerships: To better contribute to the long-term fight against financial crime, bank FIUs in Chile should seek to work in partnership with the wider financial community, sharing information and building relationships not just with law enforcement agencies but also with industry data exchange platforms such as the SWIFT KYC Registry.
  • AML/CFT Policy: FIUs identify and manage their banks’ AML risks and vulnerabilities, using that information to establish new compliance policies and targets.

Additional Functions

Beyond their investigatory role, FIUs in Chile work to support their banks’ efforts to achieve AML/CFT compliance goals. This may involve:

  • Strategic analysis of exposure to risk
  • Monitoring AML/CFT compliance
  • Blocking transactions
  • Training employees
  • Conducting research
  • Enhancing public awareness

Conclusion

The Financial Intelligence Unit (FIU) plays a critical role in Chile’s financial sector, serving as a frontline defense against financial crime. By understanding the investigative role of an FIU and its core functions, banks can better navigate the complex landscape of AML/CFT compliance.

Contact us

To learn more about how Ripjar can help Financial Intelligence Units in Chile, please contact us today.