Financial Crime World

Suspicious Transaction Reporting: Insights and Trends

Reasons for Suspicious Transaction Reporting (STR) Submission

The figure illustrating the reasons for STR submission reveals that:

  • Unusual transaction patterns: 20% of STR submissions were due to unusual transaction patterns.
  • Involvement of politically exposed persons (PEPs): 14% of STR submissions involved PEPs or unexplained association/business relationships.

Technical Alert Reports (TARs) Generation

Out of the 196 STRs received, 26 TARs were generated for further analysis. The main reasons for TAR generation include:

  • Unusual transaction patterns: 23% of TARs were due to unusual transaction patterns.
  • Involvement of PEPs or unexplained association/business relationships: 19% of TARs involved PEPs or unexplained association/business relationships.

Dissemination of Information

Information from 6 STRs and 2 TARs received in the previous years was disseminated to relevant domestic agencies, indicating potential connections between past and present suspicious activities.

Typologies Observed

After analyzing the STRs and TARs, the FIU identified various typologies related to misuse of authority and corruption, including:

  • Embezzlement: Misuse of funds or assets for personal gain.
  • Influence peddling: Exerting influence over others in exchange for favors or benefits.
  • Large cash movements: Moving large amounts of cash, often to avoid detection.

Methods of Transactions

The main method of transaction noted was:

  • Electronic fund transfers: Transferring funds electronically to local bank accounts and foreign jurisdictions.
  • Heavy cash movements: Moving large amounts of cash for transactions that may be suspicious or indicative of illicit activity.

The number of STRs received in 2020 (196) was higher than the previous year’s report, indicating an increase in suspicious activities. Similarly, the number of TARs generated increased from previous years.

Breakdown of Dissemination of Information

The breakdown of disseminated STR and TAR information shows that most of the past year’s reports were disseminated to relevant domestic agencies in the current year, indicating timely action against potential crimes.

Increase in Suspicious Activities

The increase in STRs and TARs suggests a rise in suspicious financial activities, emphasizing the importance of ongoing monitoring and analysis by the FIU to identify and mitigate potential threats.