financial intelligence unit

Office of Technical Assistance (OTA) 1

Financial Intelligence Unit

Development and the application of technology

Office of Technical Assistance (OTA)

2

Building the FIUIssues impacting technical requirements

• Laws• Regulations• Mission/Goals• Internal operations and processes (Business Process)

• Present and future size of the unit• Human resource needs • Technology budget


3

Operations & Processes

• Collect data • Analyze information • Receive transaction reports

– Currency Transactions filing (CTRs)– Suspicious Activity filing (SARs)– Etc.– Paper forms and/or electronic filing by Obligated Entities– What is the expected volume of filing?

• Compile additional financial records and intelligence• How will you approach document management and storage• Who are the FIU’s clients?

– Law Enforcement– Prosecutors– Other FIU’s

What does the FIU do?


4

Analytical ProcessComponents

Analyst

AnalyticalTools

AnalyticalTools

AnalyticalFunctionsAnalyticalFunctions

AnalyticalProductsAnalyticalProducts

InformationSources

InformationSources


5

Analytical Process

Data Text

Statistics Graphics

Analyst

AnalyticalTools

AnalyticalTools



InformationSources

InformationSources


6

Retrieve

Link

SortEdit

Calculate

Digitize

Analytical Process

Analyst

AnalyticalTools

AnalyticalTools



InformationSources

InformationSources


7

Word Processing

Spread Sheet

Graphics Data Bases

Analysis Software

Statistics Info

Analytical Process

Analyst

AnalyticalTools

AnalyticalTools



InformationSources

InformationSources


8

Analytical Process

AnalyticalTools

AnalyticalTools



InformationSources

InformationSources

Analyst

Intelligence Reports Analytical ReportsTargeting Reports

Threat AssessmentsCountry Studies

Cash Flow Analyses


9

Data Analysis Types

• Association & Link Analysis

• Statistical Analysis

• Aggregate Analysis (between data sets)

• Trends and patterns

• Fraud and ML detection analyses

Remember that the analysis techniques used by your FIU must be supported by the technology

architecture.


10

IT Systems InfrastructureLANs, WANs, Intranets, Extranets, Communication links, etc.


11

Environment

• Office facility and structure • Physical Security• Computer room requirements

• Network and communication wiring• Air conditioning and humidity controls• Etc.


12

Network Architecture

• Local Area Network (LAN) components– Network Hub(s), switches, routers, firewall– Fast Ethernet (100Mb/sec), Cat.5 cable

• Plan for:– network management and control– Power requirements – UPS requirements


13

LAN Server(s) Hardware Considerations

• Based on your size of organization and applications supported

• Expandable and easy to support in your local environment

• Capacity planning / Scalability / Upgradable• Redundancy• Backup and recovery• Security controls


14

LAN Server Functions

• Centralized storage– Small databases, documents, spreadsheets, etc.

• Email server– MSExchange, Unix Sendmail, etc.

• Other needed functions– LAN printing, calendar– Redundancy, backup and recovery

What do servers provide?


15

Dedicated Server(s)

• Server(s) for Database(s)– CTR Database– SAR Database– MIS Database– Others

• Considerations– Scalability, compatibility, ease of use– Redundancy, backup and recovery– Systems security and access controls– Power requirements – UPS requirements


16

Database Architecture

• Relational database– SQL based database

• Logical Data Model(s)– Strive for standardization & interoperability

• Client-side Database access tools– modification, queries, manipulation, etc.

(Sybase MS SQL, Oracle, Informix…, etc.)

Database Examples

Internal DB Server

CMIR

SAR

Other

CTR

Choose a database software package that best satisfies your requirements and fits your environment.


17

Logical and Common Data Model

Report

Transaction

Participant

Address

Request

Subject

Identification

Intelligence

Transaction Entity Model

Request Entity Model

Intelligence Entity Model


18

Small FIU

Data Standards – why?

Country-specific Data

Common / Core DataLarge FIU


19

Analytical Tools

• Tools for data presentation, visualization, link/association, statistical analysis, data mining, pattern discovery, etc.– Visual Analytics (VisuaLinks)

– SAS

– SPSS (Clementine)

– Xanalys (Watson)

– i2 (Analyst Notebook, etc.)

– NetMap

Which tools best meet your FIU needs and environment?


20

Workstations Hardware and Software

Example:

• Hardware (Compaq, Dell, etc.)• 256 MB Ram• 40 GB hard drive• CD-ROM/DVD

• Operating environment • Windows NT, 2000, XP

• Internet Connectivity• Network card, modem, WiFi, etc.

• Software• Word processor (MSWord)• Email (MSOutlook, Netscape, …)• Analysis tools • Database application (Access, etc.)•Internet browser (MS Explorer, Netscape, …)• Database client (Sybase, Oracle, MS SQL, …)


21

Communication Considerations

• Access to external systems (Gov’t or Commercial DBs)

• Providing access to in-house systems– Dial-up or dedicated access

• File transfers to/from FIU– secure email

• Data and communication security controls– Authentication, encryption & access audit


22

Technical Support Staff

• Network installation, configuration and support

• Systems and communication administration

• Database / software development and support

• Desktop support

Consider current and future technical support staff needs.


23

Maintenance and Support of Key Systems

• Maintenance and service level agreements to support mission critical systems for hardware and software

• Type of service(s) required– 24/7– telephone help line – Upgrades and patches

• Vendors on-site or phone support


24

Training Staff

• Technology training– Use of computers & Software– Databases– Internet– other tools

• Functional / Analytical training– Financial / Intelligence analyses– Reporting, etc.

Office of Technical Assistance (OTA) 25

Thank YouJoe BognannoEnforcement Advisor

[email protected]

T: +1 571.275.7480F: +1 703.573.6660


US Department of the Treasury

financial intelligence unit

Documents

network management

analysis techniques

expected volume of filing

data setstrends

future size

size of organization

communication links

technology architecture