Financial Crime World

Time to Reconsider: The Urgency of Reporting Suspicious Transactions in Light of New Information

As the Financial Intelligence Unit (FIU) relies on reporting entities to submit suspicious transaction reports (STRs), it is essential that these entities remain vigilant and proactive in detecting and reporting potential money laundering or predicate/serious offenses. With the increasing complexity of financial transactions and the ever-evolving nature of criminal activity, it is crucial that reporting entities stay ahead of the curve.

The Three-Day Requirement: A Concern

In light of recent developments, it has become apparent that the three-day requirement for submitting STRs may not always be sufficient to allow for a thorough investigation into suspicious activities. This has led to concerns about the effectiveness of the current system in detecting and preventing financial crimes.

Urging Timely Reporting

To address these concerns, the FIU is urging reporting entities to submit STRs as soon as they become aware of any suspicious activity. While this may require additional resources and effort on behalf of the reporting entity, it is essential that the FIU has access to timely and accurate information to effectively combat financial crimes.

Maintaining Updated Lists

Furthermore, the FIU is emphasizing the importance of maintaining updated lists of designated persons and entities subject to targeted financial sanctions. This includes keeping up-to-date with resolutions passed by the United Nations Security Council on targeted financial sanctions related to terrorism, terrorism financing, and proliferation financing.

Regular Screenings

Reporting entities are advised to conduct regular screenings of their customers and clients against these lists to ensure compliance with relevant regulations and to prevent any potential breaches. This may involve conducting name-screening checks and/or internal blacklist database searches to determine if a customer or client is listed on the UN Consolidated List or the Local List.

Additional Measures

In addition, reporting entities are encouraged to maintain an updated and current database of names and particulars of persons or entities designated by the United Nations Security Council Sanctions Committee or specified by the Minister of Finance.

Timely Reporting Platform

The FIU has also reiterated the importance of submitting reports in a timely manner. Reports can be submitted electronically via the FIU’s secured e-reporting platform, CaseKonnect, or on CD/USB hand-delivered to the FIU office.

What Happens After Submission?

What becomes of your reports when submitted to the FIU?

After submitting a report, the following chain of activities are executed:

  • The FIU receives the report and verifies its completeness and accuracy.
  • The FIU conducts an initial review of the report to determine its relevance and priority.
  • The report is then assigned to an analyst for further investigation and analysis.
  • The analyst may conduct additional research, interviews, or other activities to gather more information about the reported activity.
  • If necessary, the analyst may also refer the report to law enforcement agencies or other relevant authorities for further investigation.

Conclusion

By submitting STRs in a timely manner and providing accurate and comprehensive information, reporting entities can play a critical role in supporting the FIU’s efforts to combat financial crime and maintain the integrity of the financial system.