GUYANA: Banking Fraud Prevention Unit Sees Spike in Suspicious Transactions Amid Pandemic

Financial Intelligence Unit Reports Significant Increase in Suspicious Transactions Related to Fraud

The Financial Intelligence Unit (FIU) has reported a notable increase in suspicious transactions linked to fraud in Guyana, with many reports attributed to online scams and money laundering activities. According to FIU Director, Langevine, the pandemic has created an environment conducive for criminal activity, including financial fraud.

Spike in Suspicious Transactions in 2020

In 2020, the FIU received 341 suspicious transaction reports, a figure consistent with previous years. The majority of these reports came from the financial sector, primarily banks and non-bank financial institutions, as well as money transfer agencies.

Online Fraud on the Rise

Online fraud has become increasingly prevalent, with the FIU seeing a surge in romance scams and email compromise types fraud.

• Romance Scams: Victims are defrauded after being influenced by social media users to transfer funds in exchange for some form of inducement or to bolster an online romantic relationship. Once the funds are transferred, the scammer cuts off all contact with the victim.
• Email Compromise Fraud: Email accounts are compromised and instructions are sent to banks to wire funds to fake suppliers.

Smurfing Activities Also Monitored

The FIU has also been monitoring smurfing activities, which involve large transactions being broken down into smaller amounts to avoid detection. While not technically a crime, Langevine warns that it is a way for criminals to launder money through the financial system.

Collaboration and Information Sharing

To combat these scams, the FIU has been collaborating with local and international agencies, including other country’s Financial Intelligence Units (FIUs). In 2020, there were seven instances of information sharing with countries such as Suriname, Trinidad and Tobago, and the United States.

Public Awareness and Prevention

The unit encourages persons to report suspicious transactions and warns that those found guilty will be brought to justice. Langevine also urges individuals to take precautions when using social media platforms like Facebook and WhatsApp, and to remain vigilant against online fraud schemes.

Financial Institutions Praised for Cooperation

Financial institutions have been praised for their cooperation in reporting and blocking suspicious cases.

Conclusion

The FIU is committed to preventing financial fraud and protecting the public from these illegal activities. By working together with local and international agencies, we can combat these scams and bring criminals to justice.