What is the Egmont Group?
The Egmont Group is an International Organization formed to create ease of information sharing and cooperation among national-level Financial Intelligence Units (FIUs). The role of FIUs is to identify and put a stop to illegal activities like money laundering and terrorist funding. Though the FIUs collect and analyze information on such activities, they usually do not have the authority to enforce action on any wrong-doers themselves. They simply relay their findings to the authorized law-enforcement bodies in case they find enough evidence to make a case. In India, FIU-IND forwards its reports to the Ministry of Finance.
To help unify these FIUs and create programs that would better help domestic causes, the Egmont Group was formed as an informal group in 1995. It was formed during a meeting at the Egmont Arenberg Palace in Brussels, from where it gets its name, with only 24 members. The Egmont Group Secretariat opened its headquarters in Toronto, Canada, on 15 February 2008 and has additional offices in Ottawa. Today, the Egmont Group consists of 166 FIUs, including the United States Financial Crimes Enforcement Network (FinCEN), the United Kingdom Financial Intelligence Unit (UKFIU), and India’s Financial Intelligence Unit (FIU-IND).
What is the role of the Egmont Group?
The Egmont Group aims to connect national FIUs and maximize their efficiency in identifying potential threats to financial activities and, in turn, the corresponding nation’s financial stability. Financial crimes like money laundering are often done to cover up the moving of funds for illegal and often dangerous activities like human trafficking, terrorist funding, and smuggling. Investigating and pinpointing the root of money laundering aids law enforcement in apprehending criminals and other individuals who can put society at risk.
Through the unity provided by the Egmont Group, national FIUs can share financial information both within the country and internationally. This information can be used to strengthen and revise anti-money laundering and terrorist counter-financing regulations, increasing the vigilance and efficiency of every FIU involved. It also draws upon these instances to reform existing policies related to AML/TF.
FIUs are able to relay information to each other through a regulated and secure platform provided by the Egmont Group. The Egmont Group also aims to increase the FIU stakeholder’s and peers’ knowledge of the risks and repercussions of terrorist financing and money laundering. It works in accordance with the resolutions and goals of other inter-country groups like the G20 forum, the Financial Action Task Force (FATF), and the United Nations Security Council (UNSC).
Requirements of an FIU to join the Egmont Group
There are specific requirements that an FIU must meet before it is granted membership in the Egmont Group. The FIU in question must be a centralized agency, and its aims and operations must be to investigate and identify suspected financial criminal activity and share its findings with the Government or related foreign governmental agencies.
How the Egmont Group works
The Egmont Group chain of command is topped by the Heads of Financial Intelligence Units (HoFIUs), who communicate and make decisions on issues regarding FIU membership, the group’s budget, fundamental principles, and the structure of operations. They convey messages through a platform known as the Egmont Secure Web.
Right below them is the Egmont Committee, which acts as support and consultants for the HoFIUs. The Committee is in charge of the internal administration of the group and coordinating various other departments. They also directly oversee the working of the Egmont Group Secretariat. The Egmont Committee comprises the Chair of the Egmont Group, two vice-chairs, the Working Group chairs, Regional Group representatives from each sector, the host representative of the Egmont Secure Website, and the Egmont Group’s Executive Secretary.
The Working Groups were formed with specific mandates in mind to aid and support the member FIUs in different fields. There are four distinctive Working Groups: the Policy and Procedures Working Group (PPWG), the Information Exchange Working Group (IEWG), the Technical Assistance and Training Working Group (TATWG), and the Membership, Support, and Compliance Working Group (MSCWG). Each group is headed by a Chair and Vice Chair.
Alongside the Working Groups are the Regional Groups, which were formed to help combat region-specific issues and set common goals for these locations. Each member FIU is part of a Regional Group, and each group is led by a regional representative. FIUs within each group can share their experiences and expertise and work together for mutual development. There are eight Regional Groups- Americas, Asia and Pacific, East and Southern Africa, Eurasia, Europe I, Europe II, Middle East and Northern Africa, and West and Central Africa.
The Egmont Group Secretariat department is headed by the Executive Secretary, who reports directly to the Chairman. The Egmont Group Secretariat (EGS) handles technical, administrative, and strategic support to upper-level groups like the HoFIU, Egmont Committee, Regional Groups, and Working Groups. They also handle the Egmont Secure Online Web portal and regulate the information shared in its communities.
The Egmont Group HoFIU holds an annual Egmont Group Plenary meeting to discuss its goals and agenda, and the Egmont Committee and Working Groups meet at least twice a year.
Conclusion
Like the FATF, the Egmont Group is an inter-governmental organization aiming to combat money-laundering and terrorist financing on an International level. Though the Egmont Group itself cannot take disciplinary action, it enhances the working of Financial Intelligence Units. FIUs aid the authorities with the power to take action by providing them with information and analysis of suspicious activities. The role of the Egmont Group is to make the FIUs job easier by giving them the platform and tools to improve both domestic and international communication regarding their activities. It also aims to enhance knowledge among the public about the consequences of such actions and how to avoid falling into them.
