The Financial Intelligence Agency (FIA) has reported suspicious financial activities amounting to P191 million in just six months, as detailed in its latest Trends Report covering January to June 2023.
The report underscores a significant increase in suspected money laundering activities, with illicit proceeds allegedly funneled through various financial systems.
The FIA noted that most Suspicious Transaction Reports (STRs) linked to money laundering originated from banks, mobile money platforms, and casinos. While the sums involved in casino transactions were relatively small, banks and structuring methods accounted for the bulk of the flagged amounts. Among the reported laundering methods, P190 million was linked to bank placements, P893,000 to structuring, P89,000 to mobile money platforms, and P37,000 to casino activities.
In detailing operational methods, the FIA highlighted several schemes, including fraudulent mobile money transactions. According to the agency, some cases involved fraudsters depositing funds into a mobile money account and then calling the recipient from an unknown number, claiming the money was sent by mistake and instructing them to transfer it to an international number. In some instances, fraudsters recruited recipients to assist in transferring funds out of the country.
Casinos also emerged as a method for suspected laundering, with individuals observed purchasing casino chips and cashing them out without engaging in gambling activities. “This behavior is typical of classic money laundering cases,” the FIA stated.
Tax-related crimes were also flagged, with the agency observing a trend where sole trader businesses used personal accounts for business transactions. The FIA noted that these personal accounts are often not disclosed to the Botswana Unified Revenue Service, raising concerns about tax evasion risks.
The report also highlighted instances where large cash deposits were quickly followed by outward transfers under the guise of stock purchases from Asian countries. However, comparisons with customs declaration records revealed minimal or no corresponding imports. Most of the businesses engaged in this behavior were registered for tax but appeared to pay disproportionately low taxes compared to the volume of funds transferred.
Banks accounted for 81 percent of the STRs submitted during the review period, with fraud and scams identified as the predominant predicate offenses. The FIA emphasised that most fraudulent activities involved the unlawful acquisition of funds from the public, primarily through bank transactions. “This calls for robust Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) measures within the banking sector to safeguard against financial crimes,” the FIA said.
