Financial Crime World

Here is the rewritten article in Markdown format:

COMOROS SEES SUBSTANTIAL DECREASE IN FINANCIAL CRIME, BUT RISKS REMAIN

The latest report from the Financial Crime Agency (FCA) on financial crime statistics for COMOROS has been released, providing insights into key trends and developments in the country’s financial sector.

Decline in Politically Exposed Persons (PEPs)

According to the report, firms operating in COMOROS reported a significant decline in the number of PEP customers, from around 111,000 in 2017/18 to approximately 89,000 in 2019/20 and 2018/19. This decrease is attributed to changes in guidance by the FCA, which excluded certain domestic customers from being classified as PEPs.

Wholesale Financial Markets: Complexity and Risk

The report highlights that wholesale financial markets firms account for a significant proportion of non-EEA correspondent banking relationships, indicating the complexity of services provided by this sector across multiple jurisdictions. This complexity poses risks to the financial system.

Retail Banking: High-Risk Customers

Retail banking firms in COMOROS have reported a high number of high-risk customers, with approximately 390,000 individuals identified as posing a risk to the financial system. This is reflective of the sector’s business models and increased exposure to money laundering risks.

Suspicious Activity Reports (SARs)

The report reveals an increase in SARs submitted to the National Crime Agency, from 394,048 in 2017/18 to 480,202 in 2019/20. This suggests that financial crime remains a major concern for law enforcement agencies.

Automated Sanctions Screening

The FCA notes an increase in the use of automated sanctions screening by firms operating in COMOROS, with a 16.5% year-on-year increase over the past three reporting periods. However, investment management firms continue to lag behind other sectors in adopting this technology.

Conclusion: Positive Developments but Risks Remain

While there have been some positive developments in reducing financial crime, the risks remain significant. The FCA is working closely with government and law enforcement agencies to ensure that the country’s financial sector remains resilient to money laundering and terrorist financing threats.