Financial Crime World

Financial Intelligence Unit Report on Suspicious Activity Reports (SARs/STRs) Received in 2020

Sector-wise Distribution of SARs/STRs

The Financial Intelligence Unit (FIU) has released a report detailing the sector-wise distribution of suspicious activity reports (SARs/STRs) received in 2020. Here’s a breakdown of the key points:

  • Banks: 51% of all reports
  • Electronic Money Institutions: saw a significant increase, likely due to crypto-asset activities
  • VASPs (Virtual Asset Service Providers): still reported a low number, but are expected to increase in 2021 and potentially surpass banks as the sector submitting the most reports
  • Fiduciary Sector: experienced a decrease in reports, which may be an isolated trend that requires further evaluation
  • Casino Sector: surprisingly reported a low number of SARs/STRs, which could be due to COVID-19 pandemic measures
  • Life Insurers: showed a declining trend, which will be examined further with sector representatives

Reasons for Submission

The FIU report highlights the following reasons for submission:

  • 73.9%: Internal Compliance: institutions’ own clarifications of unusual transactions
  • 20.9%: Independent Domestic Investigative Proceedings (DP): internal investigations conducted by financial institutions
  • 5.2%: International Requests for Mutual Legal Assistance (MLA): international requests for assistance in investigating suspicious activities

Classification of Reasons for Submission

The FIU continues to use the same classification system, which distinguishes between:

  • Internal Compliance
  • Independent Domestic Investigative Proceedings (DP)
  • International Requests for Mutual Legal Assistance (MLA)

This classification system has proven its value and will be maintained.

Conclusion

Overall, the report highlights the increasing number of SARs/STRs received from electronic money institutions and VASPs, as well as the declining trend in reports from the fiduciary sector. The FIU emphasizes the need for further evaluation and monitoring of these trends to ensure effective anti-money laundering (AML) efforts.