Financial Crime World

Financial Intelligence Agency (FIA) Report on Suspicious Transactions in Botswana

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Overview of the Report

This report from the Financial Intelligence Agency (FIA) of Botswana highlights trends and observations in financial transactions suspected to be associated with financial crimes during a specific reporting period.

Types of Suspicious Transactions

The following types of suspicious transactions were observed:

Unusual Payment Methods

  • E-wallets: Unusual payments involving e-wallets, which are electronic wallets that allow users to store and make payments using their mobile devices.
  • Deposit-taking Automated Teller Machines (ATMs): Payments made through deposit-taking ATMs, which are ATMs that allow users to deposit cash into their accounts.
  • Cell Phone Banking Services: Unusual transactions involving cell phone banking services, which allow users to perform financial transactions using their mobile phones.

High Volume of Cash Transactions

  • A high volume of cash transactions, making it difficult to identify the source of funds or ultimate beneficiaries.

Base Erosion and Profit Shifting Tax Evasion Schemes

  • Common among foreign-owned companies, particularly in the clothing retail sector.
  • Involving large cash deposits referenced as sales just prior to externalizing funds.

Tax Evasion by Informal Grey Import Car Dealers

  • Foreign nationals operating unregistered pre-owned car dealerships.
  • Using cash-intensive transactions with ATMs.

Tax Fraud

  • Individuals depositing business funds into personal accounts, making it difficult for banks to form a holistic financial profile of the customer.

Virtual Assets Pyramid Schemes

  • A rise in interest and trading in virtual currencies (e.g., bitcoins).
  • Pyramid schemes that cheat investors by promising high returns on their investments.

Non-Resident Accounts

  • Foreigners opening bank accounts in Botswana, which are then used to receive large cash transfers from abroad, often wired out to other countries immediately.
  • A high volume of cash conveyance into the country as opposed to the outward flow of cash, indicating a preference for using cash over banking and new payment methods.

About the Financial Intelligence Agency (FIA)

The FIA is responsible for providing financial intelligence to law enforcement agencies and other stakeholders to help prevent and investigate financial crimes. The agency can be contacted at:

  • Postal Address: [insert address]
  • Telephone Number: [insert number]
  • Fax Number: [insert number]
  • Website: [insert website]