Banks in Fiji Urged to Adopt Anti-Money Laundering and Combating the Financing of Terrorism Best Practices
Introduction
The Financial Intelligence Unit (FIU) has issued Enforceable Guideline 9, outlining best practices for banks and other financial institutions in Fiji to combat money laundering (ML) and terrorism financing (TF).
Effective Date and Purpose
The guideline is effective from January 17, 2022, and aims to provide legal practitioners with guidance on anti-money laundering (AML) and combating the financing of terrorism (CFT) requirements. These include:
- Knowing their clients
- Establishing the source of funds
- Reporting suspicious transactions and clients to the FIU
Importance of Legal Practitioners in Fiji’s Financial System
Legal practitioners are considered “gatekeepers” in Fiji’s financial system, as criminals often seek to conceal their identity and illicit funds through their services. The guideline emphasizes the importance of legal practitioners developing internal procedures, policies, systems, and controls to prevent their businesses from being used for illicit activities.
Benefits of an Effective AML/CFT System
An effective AML/CFT system will not only prevent illegal activities but also protect legal practitioners’ businesses from being exploited by criminals. This is a crucial step in Fiji’s efforts to combat ML and TF, and banks are advised to adopt AML/CFT best practices to prevent their businesses from being used for illegal activities.
Compliance Requirements
The FIU has urged all covered legal practitioners to comply with the requirements outlined in Guideline 9, which can be accessed on its website at www.fiu.gov.fj. Fiji is a member of the Asia/Pacific Group on Money Laundering (APG) and is required to implement the Financial Action Task Force’s (FATF) international AML/CFT best practices.
Conclusion
The guideline is an enforceable instrument issued under Section 25.1(j) of the Financial Transactions Reporting Act and Regulation 35 and 37 of the Financial Transactions Reporting Regulations. The FIU has emphasized that banks in Fiji must adopt AML/CFT best practices to prevent their businesses from being used for illegal activities.