Financial Crime World

Nauru’s Financial Institutions Must Comply with Anti-Money Laundering and Combating the Financing of Terrorism Requirements

The Government of Nauru has reiterated its commitment to ensuring that all financial institutions operating in the country comply with anti-money laundering (AML) and combating the financing of terrorism (CFT) requirements.

Background

Under the AML-TFS Act 2023, financial institutions are required to implement measures to prevent money laundering and terrorist financing. The law requires financial institutions to conduct customer due diligence, monitor transactions, and report suspicious activities.

Key Requirements

  • Conduct customer due diligence, including verifying the identity of customers and beneficial owners
  • Monitor transactions for suspicious activities
  • Report any suspicious activities to the Financial Intelligence Unit (FIU)
  • Implement internal controls and risk management systems

Implementation Agencies

The following agencies are involved in implementing the AML/CFT policy:

  • Minister for Finance
  • Registrar of Banks
  • Nauru Financial Intelligence Unit (FIU)
  • Registrars of Business Names, Corporations, Partnerships or Trusts
  • Authority established under Beneficial Ownership Act 2017

International Associations

Basel Committee on Banking Supervision Principles

Nauru’s position on the application of the Basel Principles to banks operating in Nauru is provided for under Section 7(1)(a)(iii) of the Banking Act 1975.

International Association of Insurance Supervisors (IAIS)

Nauru is not a member of the IAIS. However, the Government remains committed to creating an enabling environment for the future operation of insurance service providers in Nauru.

International Organisation of Securities Commission (IOSC)

Nauru is also not a member of the IOSC. However, the Government is committed to upholding the principles of the IOSC should securities companies or agents set up business in Nauru.

Conclusion

The role of financial institutions in any society is important. It contributes to the development of an economy and brings many benefits not just to individuals but a country as a whole. With a new and updated anti-money laundering legislation, it is essential that all financial institutions operating in Nauru comply with AML/CFT requirements to prevent money laundering and terrorist financing.

Contact Details

For any further information regarding this policy, contact: