BRIEF HISTORY

The European single market has ensured trade, competition, consumer choice, employment and prosperity for all Europeans. Dark side of this achievement is that open borders also allow the free movement of criminals, terrorists, proceeds of crime and terrorist funding. This threat poses great challenges for the EU Member States, as the state agencies involved in fighting these phenomena are predominantly domestically organised and focussed. Hence, while criminals and terrorists exploit the open borders of the EU to hide their proceeds and other malicious goals, counteraction can be frustrated by the lack of intelligence caused by still existing information ‘borders’. How to break down the information barriers without breaking (national) data protection rules and regulations? How to detect hidden proceeds in the Member States without violating the privacy of innocent civilians? The Financial Intelligence Units (FIUs) within the EU introduce technology that is able to do just that.

FIUs handle financial intelligence. Generally speaking, all parties involved in handling cash or value commodities are required to disclose unusual or suspicious transactions to the FIUs. The FIUs analyse the received disclosures. In case of suspicion of money laundering or terrorism financing, the FIUs forward the gathered intelligence to the national authorities in charge of criminal prosecution. In its process of gathering this intelligence, the FIUs can request information from international counterpart FIUs. To exchange their delicate intelligence, FIUs use secured e-mail systems. As the cooperation between EU FIUs is based on community legislation (1), the EU FIUs have designed a tool specially for the purpose of exchanging financial intelligence within the EU: FIU.NET.

(1) 2000/642/JHA; Council Decision of 17 October 2000 concerning arrangements for cooperation between financial intelligence units of the Member States in respect of exchanging information