BFIU sees 74% jump in suspicious transactions linked to political, govt sectors, online betting

Infographics: TBS

The Bangladesh Financial Intelligence Unit (BFIU) recorded a 74% year-on-year increase in Suspicious Transaction Reports (STRs) and Suspicious Activity Reports (SARs) in the fiscal 2024-25, driven largely by the political and government sectors, while online gaming, betting, gambling and cryptocurrency transactions also emerged as major contributors.

According to the BFIU's FY25 annual report unveiled by BFIU Head Iqtiaruddin Md Mamun at a press briefing today (15 July), the agency received 30,199 suspicious reports during the fiscal year, comprising 20,524 STRs and 9,675 SARs.

In FY24, the agency received 17,345 reports and 5,280 in FY21.

The latest report said suspicious reports linked to the political sector rose by about 475% in FY25, while those related to the government sector increased by around 186%.

Reports involving the business sector rose 61% and remained the largest contributor in terms of the number of reports.

The BFIU said the dramatic rise in suspicious transaction reports following the change in government in August 2024 reflects the transformative impact of the political transition on anti-corruption efforts.

Speaking at the briefing, Mamun said the increase in STRs and SARs reflected intensified monitoring by the financial intelligence agency following the fall of the Awami League government "which prompted closer scrutiny of suspicious financial transactions across the banking and financial sectors."

The report said the increase in suspicious reporting was also driven by stronger regulatory enforcement, improved transaction monitoring systems, greater awareness among reporting entities of money laundering and terrorist financing risks, and increased suspicious financial activities linked to online gambling, betting, foreign exchange trading, cryptocurrency transactions 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 represents an 80% increase from the 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, accounting for around 1% and 4% of the total respectively.

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

The Criminal Investigation Department and the Anti-Corruption Commission were the leading agencies requesting financial intelligence during the period.

Meanwhile, banks reported 31.25 million cash transactions worth Tk19.45 lakh crore under the Cash Transaction Report (CTR) framework, while finance companies reported 1,484 transactions valued at Tk217 crore.

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

Online betting and cryptocurrency activity widens

The BFIU report found that suspicious transactions linked to online gaming, betting, gambling and cryptocurrency activities have spread across a wide range of occupations in Bangladesh.

Service holders accounted for the highest transaction volume, with more than Tk641 crore in debit and Tk642 crore in credit transactions, indicating that salaried individuals with stable incomes are increasingly participating in prohibited digital platforms.

Housewives, farmers, fishermen and students also recorded unexpectedly high levels of involvement, together accounting for more than Tk790 crore in related transactions.

According to the report, this suggests such activities have expanded beyond urban salaried groups to households, rural communities and young people, with personal savings, remittances and mobile financial services increasingly being used for these transactions.

The report also noted substantial transaction volumes among freelancers, technology professionals and people working in the media and creative sectors, reflecting the growing reach of digitally enabled financial crimes.

Tk76,000 crore in assets linked to Hasina

Assets worth Tk76,000 crore linked to ousted prime minister Sheikh Hasina and 10 business groups have been frozen through court orders in Bangladesh and abroad, BFIU chief Iqtiaruddin said.

Speaking at the launch of the report at Bangladesh Bank headquarters, he said Tk57,000 crore of the frozen assets are located in Bangladesh, while assets worth Tk19,000 crore have been frozen overseas.

He said authorities are continuing efforts to recover assets allegedly syphoned out of the country and expressed optimism that there would be positive developments in asset recovery by the end of the year.

Iqtiaruddin said the BFIU acts solely on the basis of suspicion, regardless of political affiliation.

"Whenever suspicious activities are detected, bank accounts are frozen. If anyone associated with the interim government is found to be involved, that will also be brought to light," he said.