Financial Crime World

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Generation of Strategic Inferences in Trend Analysis

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Sector-Specific STRs (Suspicious Transaction Reports)

The analysis of suspicious transaction reports (STRs) filed by different sectors has been reported over the years. Here are some key statistics:

Breakdown of Sector-Specific STRs

By Industry

  • Banks: 420
  • Insurance: 5
  • Credit Unions: 30
  • Money Services Businesses (MSBs): 211
  • Lending Institutions: 13
  • Means of Payment Businesses: 7
  • Trust and Corporate Service Providers: 61
  • Real Estate Agents: 1
  • Casinos: 7
  • Lawyers: 2
  • Pawn Shop (Other): 2
  • Hotel Accommodation: 1

Tax Crimes

The Comptroller of Inland Revenue is empowered to bring charges for any criminal offense committed under the Tax Administration and Procedures Act (TAPA). To enhance its compliance function, targeted training has been provided to relevant staff at the IRD. A Memorandum of Understanding (MOU) between the IRD and FSRC has formalized arrangements for information sharing.

International Taxation Unit

An International Taxation Unit has been established at the IRD to specialize in handling requests and sharing of information with counterparts and relevant stakeholder agencies.

Compliance Capacity

The IRD has enhanced its compliance capacity, resulting in a more coherent suspicious transaction reporting mechanism. Formal internal procedures for suspicious transaction reporting have been established, along with a suspicious transaction form and training regimen targeted at identifying suspicious activity by staff.

Data Collection and Reporting Mechanisms

The IRD has improved its data collection and reporting mechanisms, including an exercise to collect outstanding data in respect of Corporate Income Tax. Filing compliance levels for core taxes collected by the Inland Revenue Department have been reported over the years:

Core Taxes Filing Compliance Levels

  • Unincorporated Business Tax: 57% - 67%
  • Value Added Tax: 85% - 94%
  • Withholding Tax: 54% - 66%
  • Corporate Income Tax: 34% - 77%

These points provide insights into the generation of strategic inferences in trend analysis, highlighting key areas such as sector-specific STRs, tax crimes, international taxation units, compliance capacity, and data collection and reporting mechanisms.