Financial Crime World

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Vanuatu: Know Your Customer Regulations Crucial for AML/CFT Compliance

Improving Finance Sector Know Your Customer Capacity in the Pacific

Port Vila, Vanuatu - The Asian Development Bank (ADB) has launched a technical assistance project aimed at improving finance sector know your customer (KYC) capacity in four Pacific Developing Member Countries, including Vanuatu.

Project Objectives

The “Improving Finance Sector Know Your Customer Capacity in the Pacific” project aims to:

  • Enhance KYC processes based on risk assessments and consistent information sharing with partner financial institutions and regulators
  • Develop an appropriate legal and regulatory framework
  • Provide consistent guidance on required standards and workflows for financial institutions

Participating Countries

The project will benefit Papua New Guinea, Samoa, Solomon Islands, and Vanuatu, which will participate in the initiative to improve compliance with international requirements for anti-money laundering (AML) and counter financing of terrorism (CFT).

Technical Assistance

The ADB will provide technical assistance worth US$500,000 to support the rollout of a technology-based platform to facilitate standardization of workflows for reporting entities.

Quotes

“KYC regulations are crucial for AML/CFT compliance, and this project will help financial institutions in Vanuatu and other Pacific countries improve their KYC processes.” - Shiu Raj Singh, Project Officer at the ADB’s Sectors Group

Expected Outcomes

The project is expected to:

  • Reduce the likelihood of financial institutions losing bank accounts due to non-compliance with KYC requirements
  • Move costs of remittances to the Pacific closer to global averages

Fact-Finding Mission

The ADB has launched a fact-finding mission to Vanuatu and other participating countries to establish technical support for improving finance sector know your customer capacity. The mission will consult with government and finance sector stakeholders to identify areas where the ADB can provide assistance.

Timeline

The project is expected to be completed by December 2028, with cumulative disbursements of US$83,223.95 as of June 2024.