Connecting the Dots: How Financial Intelligence Units Expose Corrupt Money Flows

Transparency International has published a new report examining the role that Financial Intelligence Units (FIUs) play in the fight against corruption and money laundering.

Titled "Connecting the Dots: How Financial Intelligence Units Expose Corrupt Money Flows and How They Could Do More," the report analyses FIUs across 20 jurisdictions and sets out the conditions that enable them to identify, analyse and disseminate financial intelligence effectively.

Key findings

• FIUs are most effective when they have direct access to beneficial ownership, tax and law-enforcement data.
• The quality of Suspicious Transaction Reports (STRs) matters more than the sheer volume of reports received.
• Financial intelligence that FIUs produce proactively is still underused by investigative authorities, compared with intelligence generated in response to specific requests.
• Operational independence, adequate resources, modern analytical capabilities and international cooperation are essential to effective FIU operations.
• Gaps in reporting obligations for high-risk non-financial sectors continue to limit the detection of corruption and money-laundering schemes.

Recommendations

The report also offers a comprehensive set of recommendations for governments, FIUs and international standard-setters — aimed at strengthening access to information, improving the operational value of financial intelligence, deepening cooperation and safeguarding the independence of FIUs.