Financial Crime World

Sāmoa’s Central Bank Steps Up Compliance and Regulation Efforts to Ensure Financial Stability

The Central Bank of Samoa has reaffirmed its commitment to maintaining a sound and reputable financial system in the country. As part of this effort, the bank is dedicated to safeguarding the interests of depositors, creditors, policy holders, and unit holders by monitoring and enforcing international standards and best practices.

Mission and Objectives

The Financial Supervision Department of the Central Bank is responsible for regulating, licensing, and supervising the financial system in Sāmoa. The department’s prudential supervision approach focuses on detecting early signs of weaknesses in financial institutions’ performances and their overall financial conditions. This ensures that the financial system remains stable and resilient.

Supervisory Framework

The bank’s supervisory framework is based on a range of legislative instruments, including:

  • Central Bank of Samoa Act 2015: regulates the activities of commercial banks
  • Financial Institution Act 1996: provides for the licensing and supervision of financial institutions
  • Insurance Act 2007: governs the insurance industry in Sāmoa
  • Money Laundering Prevention Act 2007: aims to prevent money laundering and terrorist financing

Financial Institutions in Sāmoa

As of January 31, 2018, Sāmoa’s financial system comprises:

  • Commercial Banks: 4 institutions
  • Insurance Companies: 6 companies
  • Brokers: 4 brokers
  • Insurance Agents: 17 agents
  • Non-Bank Financial Institutions: including the Samoa National Provident Fund (SNPF), the Samoa Housing Corporation (SHC), the Development Bank of Sāmoa (DBS), and the Unit Trust of Samoa (UTOS)

Foreign Exchange Industry

The Foreign Exchange Industry in Sāmoa is also regulated by the Central Bank, with:

  • Money Transfer Operators/Restricted Foreign Exchange Dealers: 12 operators
  • Money Changers: 1 licensed operator

Licensed Financial Institutions

According to a list of licensed financial institutions provided by the Central Bank, there are:

  • 14 Commercial Banks: operating in Sāmoa