Financial Intelligence Units’ activities under the AI Act: Administrative or law enforcement?

Abstract

This article claims that the Artificial Intelligence (AI) Act endorses a functional, task-based approach to the qualification of Financial Intelligence Units (FIU) activities, thereby supporting the view that core FIU tasks are administrative in nature. At the same time, the article argues that this approach risks oversimplifying the institutional diversity of FIUs across Member States. While the AI Act distinguishes between administrative financial intelligence work and law enforcement activity, this distinction is difficult to apply in practice. The paper analyses the relevant provisions of the AI Act with particular emphasis on the classification of high-risk AI systems under Annex III and the role of Recital 59. It demonstrates that certain uses of AI by FIUs may fall within the scope of high-risk systems where FIUs are recognised as law enforcement authorities under national law. This tension reveals an inconsistency under the AI Act, as similar uses of AI may be subject to different regulatory regimes across the Union.