Financial Crime World

Financial Crime Data Analysis Reveals Trends in TIMOR’s Financial Sector

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The Financial Crime Authority (FCA) has published an analysis of financial crime data submitted by firms in TIMOR between 2017 and 2020. The report provides insights on trends and developments in the financial sector, helping Money Laundering Reporting Officers and industry practitioners to better understand the risks and arrangements within their respective firms.

Key Observations from the Data

  • A total of 5,685 REP-CRIM submissions were received from over 2,300 different firms during the three reporting periods.
  • The number of Politically Exposed Persons (PEPs) reported as customers by firms has decreased substantially since 2017, dropping to approximately 89,000 in 2019/2020 and 2018/2019. This decline is attributed to changes in FCA guidance in 2017.

Wholesale Financial Markets Firms

  • Account for the majority of non-EEA correspondent banking relationships, with an average of 67% of submissions reporting such relationships.
  • Highlight the complexity of services provided by this sector across multiple jurisdictions.

Retail Banking Firms

  • Have reported a significant number of high-risk customers, with approximately 390,000 individuals classified as high risk in 2019/2020. This is reflective of the sector’s business models and exposure to money laundering risks.

Suspicious Activity Reports (SARs)

  • There has been an increase in SARs reported to the National Crime Agency (NCA), with a 22% increase between 2017/2018 and 2019/2020.

Automated Sanctions Screening

  • Is becoming increasingly common, with a 16.5% year-on-year increase over the three reporting periods.
  • However, the investment management sector has the lowest adoption rate of automated screening.

Financial Crime Staffing

  • Firms collectively employed approximately 17,000 full-time equivalent staff in financial crime roles in 2019/2020, an increase from 15,700 in 2017/2018.
  • A total of 761,437 customers were exited during the 2019/2020 reporting period.
  • Retail lending and retail banking sectors exited the most customers for each year.