Developing financial intelligence: an assessment of the FIUs in Australia and India
| Published date | 23 October 2007 |
| DOI | https://doi.org/10.1108/13685200710830880 |
| Pages | 391-405 |
| Date | 23 October 2007 |
| Author | Milind Sathye,Chris Patel |
| Subject Matter | Accounting & finance |
Developing financial intelligence:
an assessment of the FIUs
in Australia and India
Milind Sathye
School of Business & Government, University of Canberra,
Canberra, Australia, and
Chris Patel
Department of Accounting and Finance, Macquarie University,
Sydney, Australia
Abstract
Purpose – The purpose of this paper is to present a comparative position of the extent of
commonality or diversity in the rationale, objectives, processes used and outcomes achieved by
financial intelligence agencies in India and Australia. An effective financial-intelligence unit (FIU) can
make a significant contribution to combating serious financial crimes nationally and internationally.
Design/methodology/approach – The agencies in these two countries are compared using the
framework for assessment of financial regulatory agencies – suitably modified to capture the specialist
role of such agencies. Information available at the web site of the two agencies has been used.
Findings – The study shows several commonalities and differences in the financial intelligence
agencies in the two countries and points to operational and policy changes required in making the
units more effective.
Originality/value – It is hoped that the study would encourage similar studies in respect of other
FIUs and help in contributing to making the global financial-intelligence regime more robust.
Keywords Financial institutions, Australia,India, Money laundering, Crimes
Paper type Research paper
1. Introduction
A financial-intelligence unit (FIU) is a central agency established by a government
“to receive, analyse and disseminate financial information to co mbat money
laundering” (IMF/WB, 2005, p. 1). The Financial Action Task Force (FATF, 2005,
Recommendation 26) describes it as “a national central agency with a computerised
data base, available to competent authorities for use in money laundering cases”. The
Egmont Group defines FIU as “a central, national agency responsible for receiving
(and as permitted requesting), analysing and disseminating to the competent
authorities, disclosures of financial information:
.concerning suspected proceeds of crime and potential financing of terrorism; or
.required by national legislation or regulation.
In order to counter money laundering and terrorism financing” (Egmont Group, 2004).
The first few FIUs in the world were established in the late 1980s in response to a need for
a central agency to combat money laundering. Australia was among the first few OECD
countries to establish a FIU in 1988. Over the following years, the number of FIUs has
The current issue and full text archive of this journal is available at
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Developing
financial
intelligence
391
Journal of Money Laundering Control
Vol. 10 No. 4, 2007
pp. 391-405
qEmerald Group Publishing Limited
1368-5201
DOI 10.1108/13685200710830880
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