Connecting the Dots: How financial intelligence units expose corrupt money flows and how they could do more

Corrupt money rarely moves in plain sight. It is often hidden behind complex transactions, shell companies and intermediaries, then moved quickly across borders. Yet because corrupt actors ultimately depend on the financial system, their money can leave traces. Financial intelligence units (FIUs), which sit at the centre of countries' anti-money laundering frameworks, are uniquely placed to follow those traces, connect fragmented information and identify corruption that is otherwise difficult to detect.

This report examines how FIUs function in practice in relation to corruption and corruption-related money laundering by looking at 20 FIUs across a broad range of countries, identifying operational challenges as well as policy, legal and resourcing gaps that affect their core work. The findings show that when FIUs work well, they help expose major corruption schemes, trigger investigations and recover stolen public funds. But this ability depends on fragile conditions, is uneven across countries, and is often under pressure.

The report sets out recommendations for governments, FIUs, international bodies and standard setters to strengthen FIUs’ access to information and preventive powers, make financial intelligence more operational and actionable, improve cooperation and accountability, and protect FIUs from political and institutional pressure.

See also:

• Feature article: Financial intelligence units: Powerful tools against corruption if governments let them work