Financial Crime World

Fiji’s Anti-Money Laundering Efforts Hampered by Lack of Coordination and Awareness

Fiji’s efforts to combat money laundering (AML) and counter-terrorism financing (CFT) have been hindered by significant deficiencies, according to a recent report. The report highlights the lack of coordination between government agencies and private sector stakeholders as a major obstacle.

Coordination Challenges

The report reveals that several law enforcement agencies had differing views on the ranking of criminal activities that generate illicit funds for laundering. A senior official was even unaware of the risk rating for terrorism financing in Fiji’s National Risk Assessment (NRA).

  • Private sector representatives were either not aware of the NRA or its findings, despite efforts by Fijian authorities to familiarize them with the process and results.
  • The involvement of the private sector in the AML/CFT process was limited to providing statistical data to the government.

Limited Cooperation between Authorities

The National Anti-Money Laundering Council (NAMLC), responsible for formulating Fiji’s AML/CFT policies, played a key role in developing an action plan and advising on the NRA exercise. However, coordination between authorities on money laundering investigations and prosecutions needs significant improvement.

  • The report highlights the lack of comprehensive statistics across all AML/CFT-related agencies, as required by the Financial Action Task Force (FATF) standards.
  • The Fiji Financial Intelligence Unit (FIU) provides intelligence to law enforcement agencies, but capacity, capability, and resource limitations undermine its effectiveness.

Limitations in Interception of Private Communications

The report also raises concerns about the limited ability of authorities to intercept private communications in furtherance of money laundering, terrorist financing, corruption, bribery, and other serious crime. Forfeiture outcomes are modest, reflecting an ineffective implementation of confiscation policy objectives.

  • The country lacks a comprehensive legislative framework to enable the implementation of targeted financial sanctions.
  • There is a lack of awareness among law enforcement agencies and private sector stakeholders about terrorist financing risks, particularly in the domain of designated non-financial businesses and professions (DNFBPs).

Recommendations for Improvement

The report makes several recommendations for improvement, including:

  • Strengthening coordination between government agencies and private sector stakeholders
  • Developing comprehensive statistics
  • Improving resource allocation to address key risk areas

Conclusion

Fiji’s efforts to combat money laundering and terrorist financing are crucial in preventing the misuse of its financial system and protecting its economy from illicit activities. The country must take concrete steps to address these deficiencies and strengthen its AML/CFT framework to meet international standards.