Financial Crime World

Nauru’s National Strategy for Anti-Money Laundering and Combating the Financing of Terrorism 2022-2025

Overview

The National Strategy for Anti-Money Laundering and Combating the Financing of Terrorism 2022-2025 is a comprehensive plan to prevent and mitigate money laundering, terrorist financing, and proliferation financing risks in Nauru. The strategy aims to achieve several milestones by specific dates and includes guidance from the Financial Action Task Force (FATF) Recommendations.

Implementation Timeline

The strategy has set out specific goals to be achieved by certain deadlines:

  • Legislative Drafting Project: Complete by September 2023
  • Establishment of AMLGC, AMLOC, and PPP for Better Collaboration: May-June 2023
  • AML/CFT Risk Identification: September 2023
  • Enhanced Border Currency Reporting: June 2023
  • Implementation of Targeted Financial Sanctions: September 2023
  • Preparations for Second Mutual Evaluation (ME): July/August 2023

FATF Recommendations

The strategy includes the FATF Recommendations in full, which provide guidance on how countries can effectively implement anti-money laundering and combating the financing of terrorism measures.

Key Recommendations:

  • Implement a risk-based approach to money laundering and terrorist financing
  • Identify, assess, and understand risks for the country and take action to mitigate them effectively
  • Have national AML/CFT policies informed by identified risks and regularly review these policies
  • Designate an authority or mechanism responsible for such policies

Risk-Based Approach

Nauru should:

  • Identify money laundering and terrorist financing risks for the country
  • Assess and understand these risks
  • Take action to mitigate them effectively

National Cooperation and Coordination

Nauru should have national AML/CFT policies informed by identified risks, regularly review these policies, and designate an authority or mechanism responsible for such policies.

Proliferation Financing Risk

Nauru should:

  • Identify proliferation financing risks for the country
  • Assess and understand these risks
  • Take commensurate action to mitigate them effectively