NAURU SEEKS TO STRENGTHEN FINANCIAL CRIME DATA ANALYTICS

A Bid to Combat Money Laundering and Terrorist Financing

The Financial Crimes Authority (FCA) of NAURU has released an analysis of financial crime data from 2017 to 2020. This report aims to provide valuable insights for Money Laundering Reporting Officers and industry practitioners on trends and developments in the sector.

Key Observations from the Analysis

• Decrease in Politically Exposed Persons (PEPs)
  • A significant decrease in PEPs reported as customers in 2019/20 and 2018/2019, attributed to amendments to FCA guidance.
• Wholesale Financial Markets Firms
  • Account for 67% of submissions reporting non-EEA correspondent banking relationships, indicating the complexity of services provided by this sector.
• Retail Banking Firms
  • Have reported approximately 390,000 high-risk customers in 2019/2020, exceeding those from other sectors and reflecting business models that increase vulnerability to money laundering.
• Suspicious Activity Reports (SARs)
  • The number of SARs reported to the National Crime Agency has increased by 22% over the three-year period.

Firms’ Use of Automated Sanctions Screening

The report notes an increase in firms using automated sanctions screening. However, it highlights that the investment management sector has the highest number of firms without automatic screening.

Customer Exits During the Reporting Period

The total number of customers exited during the 2019/20 reporting period has more than doubled in the last three years, with retail lending and retail banking sectors exiting the most customers.

Conclusion

The FCA’s analysis aims to inform arrangements and risks within respective firms, emphasizing the importance of effective financial crime data analytics in preventing money laundering and terrorist financing.