Financial Intelligence: Cutting-edge Technology for Financial Analysis

Posted 14 September By Master Financial Risk Management Universidad AlcaláIn Financial Risk ManagementTagged master0 comments

Financial intelligence has been developed with new methods, which require the intensive use of complex techniques for research, carried out by people endowed with financial knowledge. But what do we mean by financial intelligence? What exactly? Discover it here!

Financial intelligence at the state level

Financial intelligence at the state level consists of collecting information on matters related to financial interests or financial entities in order to understand their nature, and thus be able to make predictions. Financial intelligence is used in innumerable causes with excellent results. One of the main functions of financial intelligence is the fiscal identification of economic transactions, in order to prevent money laundering or tax evasion.

Financial intelligence studies or research in financial intelligence are highly necessary for state spheres, in countries, institutions, and companies, especially those that operate internationally. That is why countries whose objectives include obtaining strategic financial advantages, have their own government financial intelligence agency, such as France. They also promote centres and foundations for the investigation of financial intelligence.

How does financial intelligence work?

State financial intelligence organizations tend to focus on their national territory, and their function is to find suspicious or unusual financial activities. And in case of having some kind of crime take it to justice. Some countries that have organizations of this type are Argentina, Ireland, France, Australia, England, USA …

Currently in Spain cannot be considered that there is a main organization dedicated exclusively to this. However, there are several units, which experts consider insufficient.

The intelligence applied to the strategy in any international environment provides geopolitical and financial advantages to the countries that use it. The advanced countries in this area, observe and study financial intelligence to take advantage globally throughout the world where they operate, and position themselves adequately in each market, country, and zone of influence, expanding their control. A clear example in the EU European Union of this is France, which has a national economic intelligence agency.

Which are its tasks?

The intelligence agencies of the countries are generally dependent on the Ministry of Defense and are dedicated to national security. There are economic or financial intelligence agencies normally dedicated to the investigation of tax fraud or financial crimes derived or not from illicit activities (drugs, trafficking in illicit goods, etc.). These agencies usually depend on the Ministry of Economy.

In the Spanish case, the Ministry of Economy, Industry, and Competitiveness has a financial intelligence committee. Its functions, among others, are the coordination of risk analysis actions related to money laundering and terrorist financing, studies on money laundering and financing of terrorist activities or the establishment of assessment procedures by institutions. recipients of financial intelligence reports. The members of this agency are from the areas of the National Intelligence Center, Bank of Spain, Tax Agency …

Parts of financial intelligence

Financial intelligence is divided into two parts: the collection of information, and its subsequent analysis.

  1. The collection of information serves to collect information without analyzing that it may become suspicious. All these data are then passed to the analysis section, which will be commissioned by various techniques, such as data mining or data mining, to identify dangers or suspicious activities
  2. The subsequent analysis of the information collected is facilitated by the previous step and its subsequent data mining through this is less expensive to select the suspicious activities and investigate them and from here perform legal procedures to all those that are outside the framework of the law.

More and more organizations of private and public are becoming interested in this matter, not only for the benefits against fraud but also for its benefits beyond that, such as investments in different sectors from the selection and analysis of data. Companies and institutions increasingly seek people prepared and trained in this area. If you want to know more about Financial Intelligence, check out the Master in Financial Risk Management and become an expert in Finance!

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