Financial Crime World

FIU Sees Increase in Suspicious Activity Reports Amid COVID-19 Pandemic

The Financial Intelligence Unit (FIU) has reported a significant increase in suspicious activity reports (SARs) during the 2020/2021 financial year, despite challenges posed by the COVID-19 pandemic.

Report Highlights

  • The FIU received 84 SARs in 2020/2021, a 1.20% increase from the previous year.
  • The majority of these reports were related to “quick cash” scams, where individuals are manipulated into making false claims or engaging in fraudulent activities.

Decline in Cash Transaction Reports

  • Cash transaction reports (CTRs) declined by 25.21%, with 2,999 CTRs reported in 2020/2021.
  • This is attributed to the impact of COVID-19 on businesses and trading operations.

Electronic Funds Transfer Reports

  • Electronic funds transfer reports (EFTRs) saw a decline of 6.12%, with 77,592 EFTRs reported in 2020/2021.
  • However, 60.09% of these transfers were out of the country, while 30,967 were incoming.

Intelligence Reports

  • Intelligence reports increased by 319%, with 130 IRs received in 2020/2021.
  • The majority of these reports were disseminated internationally, with 81% being shared with foreign law enforcement agencies and 19% being disseminated domestically.
  • This trend is attributed to the FIU’s AML/CFT work addressing risks in the offshore sector, as well as reporting institutions identifying and reporting high-risk clients and activity.

Collaboration and Partnerships

The FIU collaborated closely with various stakeholders during the 2020/2021 financial year, including:

  • Local law enforcement agencies
  • Government departments
  • Private citizens
  • International law enforcement counterparts

The unit also partnered with organizations such as:

  • Egmont Secured Network (ESW)
  • APAN
  • ARIN AP
  • NZTCU
  • JIATF West
  • NZNDIB

Conclusion

The FIU’s annual report highlights the challenges posed by the COVID-19 pandemic on its operations, but also demonstrates the unit’s resilience and adaptability. The increase in suspicious activity reports and intelligence reports underscores the importance of continued collaboration and partnership between the FIU and other stakeholders to combat financial crime and protect the Cook Islands’ financial system.