Financial Crime World

Financial Crime Data Analytics in Samoa: Insights from Firms’ Submissions

The Financial Intelligence Unit (FIU) of Samoa has released a report providing analysis of financial crime data analytics submitted by firms operating in the country’s financial sector. The report aims to provide insights on trends and developments, which can inform the arrangements and risks of respective firms.

Key Observations from the Analysis

  • There were 5,685 submissions from over 2,300 different firms between 2017-2020.
    • Firms reported a significant decrease in Politically Exposed Persons (PEPs) as customers, from approximately 111,000 in 2017/18 to around 89,000 in 2019/20 and 2018/19.
  • Wholesale financial markets firms accounted for an average of 67% of submissions reporting non-EEA correspondent banking relationships, highlighting the complexity of services provided by this sector across multiple jurisdictions.
  • Retail banking firms reported approximately 390,000 high-risk customers in 2019/2020, more than half of all high-risk customers reported by firms from other sectors. This reflects the sector’s business models and exposure to being used for money laundering purposes.
  • The number of Suspicious Activity Reports (SARs) submitted to the Financial Intelligence Unit has increased by 22% over the past three years, from 394,048 in 2017/18 to 480,202 in 2019/20.

Automation and Staffing

  • Automated sanctions screening is becoming more widespread among firms, with a 16.5% increase in usage over the past three years.
    • Investment management sector firms have the highest number of non-users of automatic screening.
  • Firms collectively employed around 17,000 full-time equivalent staff in financial crime roles in 2019/20, an increase from approximately 15,700 in 2017/18.

Customer Exits

  • A total of 761,437 customers were exited during the 2019/20 reporting period, more than doubling over the past three years.
    • Retail lending and retail banking sectors have been responsible for exiting the most customers each year.

Conclusion

The report aims to provide insights on trends and developments in financial crime data analytics, which can inform firms’ risk assessments and compliance with regulations. The analysis highlights key observations from firms’ submissions, including changes in Politically Exposed Persons, high-risk customers, and Suspicious Activity Reports. Additionally, the report touches on automation and staffing in financial crime roles, as well as customer exits. These insights are crucial for firms operating in Samoa’s financial sector to ensure they are aware of emerging trends and developments in financial crime data analytics.