Suspicious Transaction Reports (STR) and Suspicious Activity Reports (SAR) have been increasing year over year, and in FY22, it is becoming more concerning that STR and SAR on online Forex trading transition in virtual or cryptocurrency have tripled.
Md Masud Biswas, the head of the Bangladesh Financial Intelligence Unit (BFIU), was speaking at a press conference that the rise in cash transactions in the financial sector following Covid-19 was the reason for the 62% increase in overall suspicious reports in FY22.
The most recent BFIU study shows a 326.67% increase in STR and SAR submissions from reporting organizations related to virtual currency and online forex trading.
Among these, 36% of STR/SAR were upon screening media and websites where account number was mentioned to facilitate virtual currency or online forex trading and 10% STR/SAR were logged for unusual transaction patterns.
Data analysis reveals that, even though Bangladesh Bank's operations have grown more than they had before, the country's domestic virtual currency, cryptocurrency, and online forex trading through social media and a variety of websites, including various betting websites, is not only ongoing but has grown significantly over the past two fiscal years.
Kamal Hossain, additional director of BFIU in his keynote presentation over the Annual Report 2021-2022, regarding cryptocurrency transactions said that although the complaints of suspicious transactions on the medium of virtual and online currency have decreased for a year, it has increased a lot in the last two years.
“It is becoming big threat for us,” he added.
Earlier in the opening speech, the BFIU chief said: “In fiscal 2021-22, the BFIU received a total of 8,571 suspicious transaction reports (STR) and suspicious activity reports (SAR) from reporting agencies.”
“Suspicious Transactions is not a proven crime. Because we start the investigation after getting STR or SAR. After that, if there is evidence of any crime, then we take action against them. So far, action has been taken against customers and related parties of many banks and financial institutions,” he clarified.
Data shows that, In FY21, the total number of STR and SAR was 5,280.
In FY20, FY19 and FY18 total number of STR and SAR were 3675, 3573 and 3878 respectively.
According to the BFIU report, suspicious transactions of e-commerce institutions have increased. 52 e-commerce companies have been investigated and 33 summaries have been presented to the court.
Bangladesh Bank has been requested to ensure manpower for the proposed research cell that will identify money launderers and repatriate money illegally sent abroad.