Guyana’s Financial Industry Under Attack: 180 Suspicious Transactions Reported This Year Alone
A Staggering Number of Reports
The Guyana Financial Intelligence Unit (FIU) has received a staggering 180 reports of suspicious transactions since the beginning of this year, with many linked to fraudulent activities. According to FIU Director Matthew Langevine, these reports are consistent with levels seen in previous years.
The Impact of COVID-19
Langevine attributed the increase in fraud to the COVID-19 pandemic, which has created an environment conducive for criminals to thrive. “The pandemic has stopped a lot of things, but crime is one of the things that seem to have flourished under the pandemic,” he said.
Types of Suspicious Transactions
- 46% of suspicious transactions were reported by money transfer agencies
- Banks and non-bank financial institutions accounted for most of the remaining reports
Online Fraud on the Rise
The FIU is particularly concerned about an increasing number of online fraud cases, including:
Romance Scams
- Criminals use social media platforms like Facebook and WhatsApp to defraud victims out of large sums of money
- Victims are tricked into transferring funds in exchange for a romantic relationship or other forms of inducement
- Once the funds are transferred, scammers cut off all contact with the victim
Email Compromise Fraud
- Criminals hack into the email accounts of senior executives at large companies and instruct banks to wire funds to fake suppliers
- Victims often lose large sums of money as a result
Smurfing: A Growing Concern
The FIU has also observed cases of smurfing, a practice that involves making small cash deposits in multiple bank accounts to launder money. While not technically a crime, Langevine described it as “the use and abuse of the financial system to move money on behalf of criminals.”
Cooperation and International Efforts
Langevine commended financial institutions for cooperating with the FIU and reporting suspicious cases. The unit has been working closely with international partners to tackle these frauds, including sharing information with FIUs in Suriname, Trinidad and Tobago, and the United States.
A Call to Action
Langevine urged individuals to be vigilant and report any suspected scams to the FIU, promising that his team will continue to work tirelessly to bring perpetrators to justice.