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ERITREA: Financial Intelligence Unit Plays Crucial Role in Combating Money Laundering and Asset Recovery
In the fight against financial crimes, every country’s Financial Intelligence Unit (FIU) plays a vital role in filtering out suspicious transactions and helping to recover assets obtained through illicit means. Despite its importance, many people remain unclear about how FIUs function, what they can do, and their overall value.
The Role of Financial Intelligence Units
According to experts, one of the primary roles of an FIU is to act as a buffer between reporting entities - such as banks and financial institutions - and law enforcement agencies. When a suspicious transaction is detected, the reporting entity must first contact the FIU for analysis before deciding whether further action is needed.
Buffering Against Financial Crimes
“The buffer role of FIUs is crucial not only in catching criminals but also in recovering assets obtained through their crimes,” said Thierry Ravalomanda, Senior Asset Recovery Specialist at the Basel Institute on Governance. “By analyzing Suspicious Transaction Reports (STRs) and other financial information, FIUs can provide valuable intelligence that helps law enforcement agencies to investigate and recover stolen assets.”
How Financial Intelligence Units Function
An FIU is a central national agency responsible for receiving, analyzing, and disseminating STRs or other financial information submitted by reporting entities. Most FIUs are independent administrative bodies, but some may have additional powers such as conducting searches or seizing assets.
Reporting Entities and Their Responsibilities
Reporting entities - which include financial institutions and designated non-financial businesses and professions - must put in place a preventive framework for anti-money laundering/countering financing of terrorism (AML/CFT). This involves measures such as:
- Customer due diligence
- Enhanced due diligence
- Know your customer
If a reporting entity suspects that a transaction may involve money laundering or other financial crimes, it must file an STR with the FIU. The FIU then analyzes the report and may request additional information from the reporting entity or access government databases such as criminal records or property registries.
The Egmont Group of Financial Intelligence Units
The Egmont Group of Financial Intelligence Units is an informal network of almost all FIUs worldwide, which facilitates information exchange and cooperation among its members. This network plays a vital role in combating international financial crimes, as many suspicious transactions have an international element.
Eritrea’s Financial Intelligence Unit
In Eritrea, the Financial Intelligence Unit plays a crucial role in combating money laundering and asset recovery. The unit works closely with law enforcement agencies to identify and investigate suspicious transactions, and to recover assets obtained through illicit means.
“The role of FIUs in asset recovery is one small but important component of the fight against financial crimes,” said Ravalomanda. “By working together with law enforcement agencies and other stakeholders, we can effectively combat money laundering and recover stolen assets.”
Training Programs for Financial Intelligence Units
The Basel Institute on Governance offers training programs and e-learning courses to help FIUs and law enforcement agencies enhance their skills and knowledge in asset recovery and financial investigations.
“We believe that effective cooperation among FIUs and law enforcement agencies is crucial in combating financial crimes,” said Ravalomanda. “Our training programs are designed to help FIUs and law enforcement agencies work better together, share intelligence, and recover stolen assets.”