Financial Crime World

American Samoa Takes Steps to Strengthen Banking Regulations Against Anti-Money Laundering

American Samoa has taken significant strides in implementing anti-money laundering (AML) measures, as revealed by the latest assessment by the Financial Action Task Force (FATF). The US territory has made substantial progress in aligning its banking regulations with international standards to prevent money laundering and terrorist financing.

Progress Made

According to the FATF report, American Samoa has achieved partial compliance with recommendations on:

  • Assessing risk and applying a risk-based approach
  • National cooperation and coordination
  • Money laundering offence
  • Confiscation and provisional measures
  • Terrorist financing offence
  • Targeted financial sanctions related to terrorism and terrorist financing
  • Correspondent banking

Additionally, the territory has made notable progress in implementing regulations on:

  • Customer due diligence
  • Record keeping
  • Politically Exposed Persons (PEPs)
  • Wire transfers
  • Reliance on third parties
  • Internal controls for foreign branches and subsidiaries
  • Reporting of suspicious transactions
  • Tipping-off and confidentiality
  • Transparency and beneficial ownership of legal persons and arrangements

Areas Requiring Improvement

However, American Samoa still needs to enhance its regulations and supervision of financial institutions, as well as improve the powers of supervisors. The territory is also urged to:

  • Strengthen DNFBPs (Designated Non-Financial Businesses and Professions) customer due diligence
  • Implement additional measures for DNFBPs
  • Enhance its financial intelligence unit, law enforcement, and investigative authorities
  • Improve cash couriers, statistics, guidance, and feedback
  • Sanctions, international instruments, mutual legal assistance, freezing and confiscation, extradition, and other forms of international cooperation

Challenges Remain

The FATF assessment highlights that American Samoa still has a long way to go in implementing the remaining recommendations. The territory’s financial sector remains vulnerable to money laundering and terrorist financing risks due to:

  • Inadequate regulation and supervision
  • Insufficient customer due diligence
  • Lack of transparency in beneficial ownership

Response and Next Steps

In response to these findings, American Samoa’s banking authorities have committed to strengthening its AML/CFT regime and implementing additional measures to prevent money laundering and terrorist financing. The territory is also working closely with international partners to enhance cooperation and sharing of information on suspicious transactions.

As a US territory, American Samoa’s banking regulations are subject to oversight by federal authorities, ensuring that the territory’s financial sector remains compliant with international standards and best practices in AML/CFT.