Financial Crime World

Northern Mariana Islands Lags Behind in AML/CFT Best Practices, Experts Warn

Warning for Financial Institutions and Regulators

Experts have highlighted significant gaps in the Northern Mariana Islands’ anti-money laundering and counter-terrorist financing (AML/CFT) regime, warning of substantial risks due to its global financial connections and openness to international transactions.

Gaps in AML/CFT Regime

According to a recent evaluation by the Financial Action Task Force (FATF) and the Asia/Pacific Group on Money Laundering (APG), the Northern Mariana Islands’ AML/CFT regime has serious weaknesses:

  • Access to beneficial ownership information: The territory lacks adequate systems for accessing beneficial ownership information, leaving it vulnerable to money laundering and terrorist financing.
  • Comprehensive supervision of non-financial businesses and professions: The regulatory framework lacks adequate coverage of certain professions, including investment advisers, lawyers, accountants, real estate agents, trust and company service providers.

Experts’ Concerns

“The Northern Mariana Islands’ lack of comprehensive AML/CFT supervision for non-financial businesses and professions is a major concern,” said [expert’s name], a leading authority on AML/CFT best practices.

Recommendations to Strengthen AML/CFT Regime

To address these gaps, experts recommend that the Northern Mariana Islands take immediate action:

  • Implement targeted financial sanctions: The territory should implement targeted financial sanctions to prevent the misuse of its financial system.
  • Improve access to beneficial ownership information: Efforts should be made to improve access to beneficial ownership information to prevent money laundering and terrorist financing.
  • Prioritize national coordination and cooperation: The Northern Mariana Islands must prioritize national coordination and cooperation on AML/CFT issues, as well as provide good quality and constructive mutual legal assistance and extradition.

Conclusion

While the Northern Mariana Islands has made significant progress in combating money laundering and terrorist financing, its AML/CFT regime remains vulnerable due to significant gaps in access to beneficial ownership information and comprehensive supervision of non-financial businesses and professions. Urgent action is needed to address these weaknesses and ensure the territory’s financial system is protected from illicit activities.