American Samoa Embraces Best Practices in AML/CFT to Strengthen Financial System
The Financial Action Task Force (FATF) has recently commended American Samoa for its efforts in implementing best practices in anti-money laundering (AML) and combating the financing of terrorism (CFT). The country’s Follow-Up Report 2018 highlights significant progress in adhering to international standards, with most recommendations being largely or partially compliant.
Risk Assessment and Risk-Based Approach
American Samoa has made substantial progress in assessing risks related to money laundering and terrorist financing, with a robust risk-based approach in place. This enables the country to focus its efforts on high-risk sectors and transactions.
National Cooperation and Coordination
The country’s law enforcement agencies have demonstrated effective coordination and cooperation in tackling AML/CFT threats. This has led to improved information sharing and joint investigations.
Money Laundering Offence and Confiscation Measures
American Samoa has implemented a comprehensive money laundering offence, making it illegal to engage in such activities. This sends a strong message that the country will not tolerate financial crimes. The country also has put in place confiscation and provisional measures to seize assets involved in AML/CFT offenses.
Terrorist Financing Offence and Targeted Financial Sanctions
The country has implemented an offence specifically targeting terrorist financing, demonstrating its commitment to combating this threat. American Samoa has also put in place targeted financial sanctions related to terrorism and terrorist financing, as well as proliferation.
Regulatory Framework
American Samoa’s regulations regarding non-profit organizations are now more transparent, making it easier to monitor their activities and prevent misuse. The country has revised its financial institution secrecy laws to ensure greater transparency and cooperation with international authorities.
Customer Due Diligence and Record Keeping
The country has implemented robust customer due diligence measures, including enhanced know-your-customer requirements. American Samoa’s record-keeping requirements are now more comprehensive, enabling law enforcement agencies to trace financial transactions and monitor suspicious activities.
Correspondent Banking and Money or Value Transfer Services
American Samoa has strengthened its correspondent banking regulations, ensuring that banks engage in due diligence when establishing relationships with foreign institutions. The country has also implemented stricter requirements for money or value transfer services, such as wire transfers and cash couriers.
New Technologies and Wire Transfers
The country is now better equipped to monitor AML/CFT risks related to new technologies, such as e-wallets and cryptocurrencies. American Samoa’s regulations regarding wire transfers are more comprehensive, enabling law enforcement agencies to trace financial transactions.
Reporting of Suspicious Transactions
American Samoa’s regulations require financial institutions to report suspicious transactions promptly, enabling law enforcement agencies to take swift action. The country’s regulations also protect the confidentiality of information related to suspicious transactions, preventing tipping-off and ensuring that investigations are not compromised.
DNFBPs and Transparency
American Samoa has implemented enhanced customer due diligence measures for designated non-financial businesses and professions (DNFBPs). The country has also put in place additional measures to regulate DNFBPs, such as real estate agents and lawyers. American Samoa’s regulations require greater transparency regarding the beneficial ownership of legal persons and legal arrangements.
Regulation and Supervision
American Samoa has implemented measures to regulate and supervise financial institutions, ensuring that they comply with AML/CFT requirements. The country’s financial intelligence units are now better equipped to provide analysis and information on suspicious transactions.
Statistics and Guidance
The country’s statistical authorities are now better equipped to track AML/CFT trends and monitor the effectiveness of its regulations. American Samoa provides clear guidance to financial institutions on AML/CFT requirements and provides feedback on their compliance.
Challenges and Future Direction
While American Samoa has made significant progress in combating money laundering and terrorist financing, it still faces challenges in terms of effective enforcement and public awareness. With continued commitment and improvement, the country is well on its way to becoming a model for AML/CFT compliance in the region.