Financial Crime World

Fiji’s Anti-Money Laundering and Counter-Terrorist Financing Efforts Fall Short

A recent assessment of Fiji’s anti-money laundering (AML) and counter-terrorist financing (CFT) measures has revealed several weaknesses in the country’s efforts to combat these threats.

Weaknesses in Fiji’s AML/CFT System

  • Lack of Comprehensive Statistics: Fiji’s AML/CFT system is hindered by a lack of comprehensive statistics across all related agencies.
  • Capacity and Resource Limitations: The Financial Intelligence Unit (FIU) faces capacity and resource limitations that undermine its ability to effectively respond to financial intelligence.
  • Ineffective Law Enforcement: Despite drug-related crime being identified as a serious money laundering threat, the Fiji Police Force (FPF) has not convicted any individuals for money laundering offenses linked to drug crimes.
  • Insufficient TF Offense: The country’s legal framework lacks a comprehensive legislative framework to enable implementation of targeted financial sanctions.
  • No Coordination between Agencies: There is no coordination between operational agencies, resulting in parallel investigations and referrals not being made.

Private Sector Awareness

  • Lack of Awareness among DNFBPs: There is a lack of awareness among designated non-financial businesses and professions (DNFBPs) about terrorist financing.
  • Inadequate Training: Two specialist units within FPF have responsibility for TF, but there is no competent authority identified for implementing relevant targeted financial sanctions.

Recommendations

The Asia-Pacific Group on Money Laundering (APG) recommends that Fiji:

  • Enhance Legislative Framework: Strengthen its legislative framework to address deficiencies in the TF offense and targeted financial sanctions.
  • Improve Coordination between Agencies: Strengthen coordination between operational agencies to improve referrals and parallel investigations.
  • Increase Awareness among Law Enforcement and Private Sector: Increase awareness among law enforcement agencies and the private sector about terrorist financing.
  • Develop Comprehensive Plan for Targeted Financial Sanctions: Develop a comprehensive plan to implement targeted financial sanctions.
  • Improve FIU’s Capacity and Resource Limitations: Improve the FIU’s capacity and resource limitations to effectively respond to financial intelligence.
  • Enhance FPF’s Capability to Intercept Private Communications: Enhance the FPF’s capability to intercept private communications in furtherance of money laundering, terrorist financing, corruption, bribery, and other serious crimes.

Conclusion

Fiji has been working to strengthen its AML/CFT regime, but it remains to be seen whether the country will implement the necessary reforms to address these weaknesses and effectively combat money laundering, terrorist financing, and other serious crimes.