THE ROLE OF FINANCIAL INTELLIGENCE ANALYSIS IN RESOLVING CRIME.

BY
Mr N. CHAWANDA(2015)
Financial intelligence analysis involves the evaluation, scrutiny and analysis of gathered or
collected information about the financial affairs of entities of interest, to understand their nature
and capabilities, and predict their intentions (John M, 2012). Audit firms, state revenue
authorities (for example ZIMRA), police, the government (policy makers or decision makers)
and the Financial Intelligence Units are some of the users of financial intelligence in resolving
crime in the financial sector. A crime is an act or omission that constitutes an offence which
may be prosecuted by the state and is punishable by law (John M, 2012). The financial
intelligence analysis helps the law enforcement agencies, the government itself and some
government agencies in a number of ways which include providing investigative support to
crime investigators, identifying criminals and crimes committed, support an intelligence-led
policing, projecting crimes and crime rates and trends.

Analysis of the financial intelligence provides an investigative support to the law enforcement
agencies. For example, in USA the Financial Crimes Enforcement Network (FinCEN)
conducts financial intelligence analysis financial and then provides intelligence via analytical
assistance to federal, state, and local law enforcement agencies nationwide, and certain federal
regulatory authorities. The focus of the analytical assistance that is given to law enforcement
agencies and authorities is on narcotics, money laundering, financial crimes and information
on alleged violators of a wide spectrum of other crimes. As exemplified by the case of the
terrorist group AL-Qaeda, financial intelligence analysis from the (FinCEN) was used by the
Central Intelligence Agency (CIA) to identify the funding sources for the terrorists in the
investigation of the case of Osama Bin Laden by (Freda Adler et al, 2004). This analysis helped
the US government to choke off the bloodline or the pipeline of funds which supported the
Qaeda terrorist network.

Moreover, the perpetrators of the crimes can also be identified through an effective financial
intelligence analysis process. For example, intelligence analysis done by the forensic auditors
can identify the individuals responsible for an illicit transaction or the perpetrators of the

identified criminal activity such as fraud or corruption. An analysis of the transaction involved
in the criminal activity will pick those who were involved in the crime committed.

According to (Maguire & John, 2006), financial intelligence analysis helps in pursuing an
intelligence-led policing, a model of policing where intelligence is used as a guide to
operations. It is crime fighting that is guided by effective intelligence gathering and analysis.
Intelligence-led policing involves interpreting the criminal environment to influence decisions
that will have an impact on crime solving and reduction. The police use financial intelligence
to deal with crimes such as narcotics, drug trafficking and arms trafficking. It is through the
financial intelligence analysis that the movement of the proceeds of crimes from narcotics and
arms trafficking is identified and an understanding of how the crime is being committed,
including how the funds to support the criminal activities is being moved.

Financial intelligence analysis also can form the basis for crafting policies to combat crime
especially through the use of Acts of parliaments. The results of financial intelligence analysis
can provide warning threats to the state on crimes which may affect the financial institutions.
Crime projections, crime trend analysis and statistical modelling done through financial
intelligence analysis may provide a means of estimating future crime rates. It gives a timely
warning of threats to the national security and other crimes which might disturb or weakens
the financial system of the country. Therefore through financial intelligence analysis, the state
can become proactive to such criminal activities as the misuse of the financial system for
money laundering activities by the organised criminals through enacting an Act of parliament
which address that criminal problems.

Identification of the crimes committed is also facilitated through the use of financial
intelligence analysis. The Financial Intelligence Units (F.I.Us) make use of financial
intelligence analysis to identify money laundering crimes and other financial crimes such as
terrorist financing through the evaluation and analysis of Suspicious Transactions Reports or
Money Laundering Reports from designated institutions. The F.I.Us carries out an intelligence
analysis on the submitted reports and try to figure out the crimes committed. Though the
analysis of the financial transactions related to the suspected individual or organisation, the
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F.I.Us can identify or come to a conclusion whether there is an attempt to engage in money
laundering. The F.IUs are regarded the specialist on money laundering crimes hence through
their financial intelligence analysis crimes in the financial sector such as the money laundering
and terrorist financing is identified.

Resource allocation in the police sector can also be facilitated by the financial intelligence
analysis. Crime projections and predictions through financial intelligence analysis can be used
as a basis for determining the allocation of resources in the police department. The state can
identify the security sector which needs more resources in fighting and preventing crime. For
example, after financial intelligence analysis, the intelligence organizations can predict crimes
related to terrorist attacks through the analysis of movement of funds to fund terrorist groups.
Thereafter the state can churn more resources to counter intelligence security services.

During the audit process, the auditors also use the financial intelligence analysis tool to identify
errors, concealments and fraud in the financial statements. The auditors, analyse their clients
financial statements evaluating, analysing and scrutinising for any cases of misrepresentation
of facts or transactions. An intelligence-led auditing process is more effectively practiced by
the forensic auditors. The forensic auditor can unearth concealed illicit transactions and cases
of corruption, misappropriation of assets usually through financial intelligence analysis.

The revenue authorities like ZIMRA also conduct financial intelligence analysis in
identifying tax payers who try to avoid their fiduciary obligations by moving wealth
surreptitiously out of a tax-levying jurisdiction. Through analysis, evaluation and scrutiny of
the financial transactions, the revenue authorities can unearth or identify attempts to evade
tax by taxpayers For example in cases where there is a whistle blower to the ZIMRA of tax
evasion, ZIMRA officials will conduct financial intelligence analysis on the suspect to verify
the authenticity of the allegations raised by the whistle-blower.

It can therefore be concluded that financial intelligence analysis is of great importance in

resolving crime specifically in the financial system. It provides an investigative support to
the law enforcement agencies, identify crimes and criminals, identify source of funding for
terrorist, allocation of resources to security and also helps in an intelligence led policing.

REFERENCE
Freda Adler et al, 2004, Criminology, 5th edition, McGraw-hill, New York, USA.

John, M., 2012, Money laundering. A guide for criminal investigators. 3rd edition. Tylor and
Francis , New York, USA.

Kelling, G.L. and Bratton, W.J., 2006.Policing terrorism, Civic Bulletin, UK.

Maguire, M. and John, T., (2006) Intelligence led policing, managerialism and community
engagement: Competing priorities and the role of the National Intelligence Model in the UK.
UK,