Nauru’s Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) Efforts

The APG assessed Nauru’s AML/CFT regime as being broadly commensurate with its risks, but noted several areas for improvement.

Additional controls in the offshore sector: Nauru needs to implement additional controls to ensure that its offshore sector is compliant with international standards.
AML/CFT efforts by the Nauru Agency Corporation and Nauru Trustee Corporation: These entities should focus their AML/CFT efforts on providing controls for the offshore sector.
Attracting a banking institution: Nauru should attract a banking institution to provide a wider range of financial services to its citizens, subject to AML/CFT controls.

The APG recommended that the Government of Nauru (GON) take the following steps:

Supervise alternative remittance providers: The GON should supervise alternative remittance providers to ensure they are compliant with international standards.
Amend AML legislation: The GON should amend its AML legislation to include a greater number of predicate offenses and reduce restrictive conditions in relation to tax matters.

Nauru does not conform to the following government legislation, as per the 2012 and 2013 INCRS Comparative Tables:

Criminalised Beyond Drugs: Nauru has extended its anti-money laundering statutes and regulations to include nondrug-related money laundering.
Arrangements for Asset Sharing: By law, regulation or bilateral agreement, Nauru permits sharing of seized assets with third-party jurisdictions that assisted in the conduct of the underlying investigation.
Cooperates with International Law Enforcement: Banks are permitted/required to cooperate with authorized investigations involving or initiated by third-party jurisdictions, including sharing of records or other financial data.
States Party to UN 1988 Convention: Nauru is a state party to the 1988 United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances.

Nauru is not currently included on the EU White list of equivalent jurisdictions.