Financial Crime World

Fraudulent Activities on the Rise in Guyana’s Finance Industry

Introduction

The Financial Intelligence Unit (FIU) of Guyana has reported a significant increase in fraudulent activities in the country’s finance industry. Many of these reports are related to fraud and money laundering, with the pandemic creating an environment conducive for criminal activity.

According to the FIU, the pandemic has led to an increase in fraudulent activities, including online scams and money laundering. The unit received 341 suspicious transaction reports last year, with 46% coming from money transfer agencies and primarily from banks and non-bank financial institutions.

Types of Fraud

The FIU has observed an increasing number of suspicious transactions relating to online fraud, including:

  • Romance scams: individuals are defrauded of money after being influenced by social media users to transfer funds in exchange for some form of inducement or to bolster an online romantic relationship.
  • Email compromise types of fraud: individuals are tricked into transferring money to fraudulent accounts.

Smurfing

The FIU has also been paying attention to the incidence of smurfing, a method used to launder money through the financial system. While not technically a crime, it is considered a way to use and abuse the financial system to move money on behalf of criminals.

Efforts to Combat Fraud

Despite efforts by financial institutions to cooperate and report suspicious cases, scams have not decreased over time. However, the FIU has commended financial institutions for their efforts and has been working collaboratively with agencies both locally and internationally to tackle these scams.

  • The unit has shared information with several countries, including Suriname, Trinidad and Tobago, and the United States.
  • The FIU encourages persons to be diligent in reporting scams and cooperates with law enforcement agencies to investigate and prosecute fraudulent activities.

Conclusion

The Financial Intelligence Unit (FIU) of Guyana is working tirelessly to combat fraudulent activities in the country’s finance industry. The unit has reported a significant increase in suspicious transactions, including online fraud and money laundering. While efforts by financial institutions have been commendable, more needs to be done to tackle these scams. The FIU encourages persons to be vigilant and report any suspicious activities to help prevent and combat fraud.