According to the regulations in international texts, 'suspicious transaction reporting,' which has become an indispensable part of the Anti-Money Laundering system, has been one of the most important factors that created a central unit's need. Suspicious transaction reporting is the obligation to report an extraordinary, unusual situation or suspicion to the competent authorities in a transaction conducted through a financial institution.
In this context, countries, obliged banks and financial institutions to report suspicious transactions. Each country has set up Financial Intelligence Units(FIUs) tasked with analyzing reporting and communicating it to authorized units.
Egmont Group of Financial Intelligence Units
Egmont Group's primary purpose is to help countries develop their national anti-money laundering systems. Egmont Group was established in 1995, and this unit is a unified structure that ensures secure financial transfer between Financial Intelligence Units at local and international levels. It consists of 159 Financial Intelligence Units (FIUs). Subject to international standards regarding AML / CFT and other binding rules applicable to Egmont Group members, both should engage in activities that encourage and facilitate international cooperation, such as the approved Basic Charter and Guidelines for Information Exchange Principles.
Egmont Group's FIU information are businesses that are obliged to collect, analyze, and forward financial information regarding money laundering and terrorist financing to the relevant departments. However, the jurisdiction and duties of these units are not limited to this. Some financial intelligence units have the powers to investigate and conduct money laundering investigations. Egmont Group guides financial intelligence units to ensure secure information exchange following AML / CTF obligations.
The Role of FATF on Egmont Group
Egmont Group work is carried out through meetings held with the participation of member country representatives. The formation of the group is based on various international initiatives and decisions, in which the FATF, in particular, plays a significant role. International cooperation in the prevention of money laundering promoted in the FATF 40 Recommendation was instrumental in forming the group.
How Egmont Group Works?
Egmont Group has formed working groups to take concrete steps in achieving the Goals. Egmont working groups and their duties are as follows;
The Legal Working Group
The Legal Working Group examines all legal regulations and discusses the candidacy of potential members. It also leads the preparation of official documents belonging to the Egmont Group.
Training Working Group
It is the group that collaborates with other organizations to coordinate technical assistance around the world. It organizes international and regional seminars for the needs of the financial intelligence units of the member countries.
Outreach Working Group
It conducts studies to expand and develop the global financial intelligence unit network. Providing the preliminary communication of the financial intelligence units that it will host, this unit's Egmont It makes evaluations that determine whether it is ready for membership.
Operational Working Group
It develops working methods by using the information gathered by financial intelligence units. It also plays a central role in promoting cooperation between operational divisions of member financial intelligence units. The Information Technology Working Group is a group that provides technical support to financial intelligence units. Carries out activities to facilitate electronic information exchange between these units.