BFIU sees 74% surge in suspicious transaction reports in FY25

The Bangladesh Financial Intelligence Unit (BFIU) recorded a 74% year-on-year increase in suspicious transaction and activity reports in fiscal year 2024–25, driven largely by heightened scrutiny of financial activities following Bangladesh's political transition.

According to the BFIU's annual report for FY25, unveiled at a press briefing today (15 July), the agency received 30,199 suspicious reports during the fiscal year, comprising 20,524 Suspicious Transaction Reports (STRs) and 9,675 Suspicious Activity Reports (SARs).

The figure marks a sharp rise from 17,345 reports received in FY24 and is nearly six times higher than the 5,280 reports recorded in FY21. The report was presented at a briefing chaired by BFIU Head Iqtiaruddin Md Mamun.

Speaking at the event, Mamun said the increase in STRs and SARs reflected intensified monitoring by the financial intelligence agency following the fall of the Awami League government.

"The surge in STRs and SARs reflects the agency's heightened monitoring efforts after the fall of the Awami League government, which prompted closer scrutiny of suspicious financial transactions across the banking and financial sectors," he said.

According to the report, the rise in suspicious reporting was driven by stronger regulatory enforcement, improved transaction monitoring systems, greater awareness among reporting entities regarding money laundering and terrorist financing risks, and increased suspicious financial activities linked to online gambling and betting, foreign exchange and cryptocurrency trading, and digital hundi operations.

The banking sector remained the largest contributor to the country's financial intelligence reporting system.

Banks submitted 28,755 STRs and SARs during FY25, accounting for around 95% of all suspicious reports received by the BFIU. This represented an 80% increase from 15,991 reports filed by banks in FY24 and more than double the 12,809 reports submitted in FY23.

Financial institutions and money remitters contributed comparatively smaller shares. Financial institutions filed 250 reports during the fiscal year, while money remitters submitted 1,095 reports, representing around 1% and 4% of total reports, respectively.

The report also showed a rise in information-sharing activities between the BFIU and law enforcement agencies. Requests for financial intelligence increased by nearly 15%, climbing from 1,157 in FY24 to 1,329 in FY25.

The Criminal Investigation Department (CID) of Bangladesh Police and the Anti-Corruption Commission (ACC) were the leading agencies seeking financial intelligence information.

Meanwhile, banks reported 31.25 million cash transactions worth Tk19,452 billion under the Cash Transaction Report (CTR) framework. Finance companies reported 1,484 transactions valued at Tk2.17 billion.

The BFIU said the decline in CTR submissions reflected Bangladesh Bank's continued efforts to promote a cashless and digitally enabled financial system.