THE Financial Intelligence Unit (FIU) has reported that during the period 2013-2014, some 1,257 Suspicious Transaction Reports (STRs) were received from Licensed Financial Institutions (LFIs), money transfer businesses and cambios, but after initial analysis, only 15 required follow-up action.The FIU in its annual report for 2014 pointed out that in early 2013, a new suspicious transaction reporting format accompanied by specific guidelines followed several guidance and feedback sessions with reporting entities.
These sessions were related to risk assessment and Enhanced Due Diligence (EDD) procedures when dealing with usual, complex and large volumes of transactions.
Towards the end of 2013, the FIU recognised that the reporting entities were continually reporting as suspicious transactions, activities that were either unusual, complex or above predetermined thresholds.
As a result, it initiated a series of awareness and guidance sessions on a one-on-one basis in those instances where these occurrences were most prevalent.
From the awareness sessions, STRs reduced by 56.8 per cent in 2014.
In 2013, some 878 STRs, involving 654 subjects were received from reporting entities. According to the FIU, multiple STRs were received on 224 subjects or 25.5 per cent of the total STRs reported.
The total value of the 878 STRs amounted to approximately US12.5 million.
Some 73 STRs from 67 subjects were received from LFIs during 2013, the value of which was some US$4.1 million.
“In addition to the 73, there were 13 that were withdrawn by the LFIs for review and further analysis due to the lack of information that referred to or created a suspension of money-laundering, terrorist financing or proceeds of crime,” the FIU said.
There were 41 or 56 per cent involving cash transactions and 16 or 21.9 per cent involving other financial instruments; 55 or 73.3 per cent which related to General Financial Transactions; 14 or 19.2 per cent which involved International Money Transfer transactions; and two involved cambio transactions.
Some 19 or 26 per cent involved businesses and 54 or 74 per cent involved individuals.
The money transfer businesses accounted for the highest number of STRs of all the categories of reporting entities. During 2013, 721 or 82.1 per cent of all STRs were received from money transfer businesses, which involved 526 subjects. These 721 were valued at US$5.3 million.
The FIU said all of the 721 STRs from money transfer businesses involved individual subjects. The cambios filed 84 STRs, which involved 61 subjects. These STRs were valued US$3.1 million and involved individuals. After an initial analysis, none of the 84 warranted further analysis or follow-up action by the FIU.
In 2014, some 379 STRs involving 304 subjects were received from reporting entities, the total value of which amounted to some US$9.9 million.
Also in 2014, the total STRs received from all reporting entities reduced by 499 or 56 per cent when compared with 2013. The subject of these STRs also reduced from 654 in 2013 by 350 or 53.5 per cent to 304 in 2014.
The value was US$12.5million in 2013, which also represented a reduction of US$2.6 million or 20.8 per cent when compared with US$9.9 million in 2014.
The FIU’s vision is to eradicate money- laundering and the financing of terrorism from Guyana by providing effective intelligence to ensure its mission is achieved.
The mission of the unit is to provide critical and effective intelligence aimed at protecting the integrity of Guyana’s financial system by the detection, deterrence and suppression of money- laundering and the financing of terrorism, through collaboration with law-enforcement agencies, regulators and international counterparts.