The Tribune

By NEIL HARTNELL

TRIBUNE Business Editor

nhartnell@tribunemedia.net

THE FINANCIAL Intelligence Unit (FIU) dealt with a 50.26 percent surge in suspicious transactions reports (STRs) during 2025 attributed to “a continued rise in reporting activity and vigilance by financial institutions”.

The agency, which is responsible for analysing STRs to determine if there is sufficient evidence of financial crimes that warrants further investigation by other bodies, such as the Royal Bahamas Police Force, also saw inter-agency reports more than double from 71 in 2024 to 199, while requests for assistance by overseas counterparts remained relatively flat at 64.

The FIU’s 2025 annual report, tabled in the House of Assembly yesterday, noted that STRs rose in number by almost 500 - from 933 in 2024 to 1,402 last year. Emerick Seymour, its director, wrote that the increase was “a notable feature” and “reflects both heightened awareness among reporting entities and the growing complexity of the financial crime environment”.

The 2025 increase followed the prior year’s 28 percent STR leap from 2023, with reports rising then from 724 to 933. “Banks remained the largest source of STR submissions, filing 716 reports in 2025 compared to 676 reports in 2024 and 612 reports in 2023,” the FIU’s annual report said.

“Digital assets businesses recorded the most significant increase, submitting 483 STRs in 2025, up from 72 STRs in 2024. This growth reflects the expanding role of the digital asset sector and increased reporting activity within the industry.” Money remittance businesses increased the number of STRs submitted almost eight-fold in 2025, from five in 2024 to 39.

Securities firms submitted 85 STRs in 2025, as opposed to 57 the prior year, while trust and insurance companies were relatively flat at 16 and five, respectively, compared to 12 and three in 2024.

The FIU said the most frequent reason for submitting STRs, some 504 compared to 369 in the prior year and 293 in 2023, was account activity that did not match what clients had disclosed on their due diligence forms and Know Your Customer (KYC) processes.

Evidence of forged documentation “increased substantially” as a reason for submitting STRs in 2025, the number of reports rising to 145 compared to 46 in 2024 and 50 the year before that. Cash-based transactions also rose as a reason for submitting STRs - from 61 reports in 2024 to 89 last year - while information that institutions received from third-parties sparked 138 STRs compared to 76 in 2024.

“Money laundering emerged as the most frequently reported suspected offence, accounting for 283 STRs in 2025 compared to 71 STRs in 2024,” the FIU’s 2025 annual report said.

“Money laundering using digital assets accounted for 91 STRs, reflecting the growing significance of digital asset-related financial crime risks. Fraud remained a leading category of suspected criminality, increasing slightly to 244 STRs in 2025 from 242 STRs in 2024 and 187 STRs in 2023.

“Tax matters continued to rise, increasing to 220 STRs in 2025 compared to 132 STRs in 2024 and 89 STRs in 2023, indicating heightened reporting of tax-related concerns…. Crypto currency scams declined to 14 STRs compared to 25 STRs in 2024. Drug trafficking decreased to six STRs fromn 15 STRs in 2024.”