Financial Crime World

Kiribati Financial Institutions Boost Security Measures to Combat Money Laundering and Terrorist Financing

Strengthening Financial Security

In an effort to ensure the integrity of its financial system and prevent criminal activities, Kiribati’s financial institutions have implemented robust measures to detect and prevent money laundering and terrorist financing.

Transactional Activity Monitoring

  • Institutions are monitoring transactions executed on behalf of themselves or clients to identify potential risks.
  • The effectiveness of transaction monitoring systems has been improved, as well as data capture on transactions.

Customer Portfolio Management

  • Kiribati’s financial institutions have strengthened their customer portfolio management by conducting thorough due diligence and know-your-customer (KYC) processes on customers.
  • This includes analyzing entity type, industry, risk categories, and Politically Exposed Person (PEP) status to ensure compliance with anti-money laundering regulations.

Regulatory Enforcement Actions

  • Regulatory enforcement actions against Kiribati’s financial institutions have been scrutinized, with negative press related to financial crime issues that reflect poorly on the organization.
  • Geographic footprint analysis has identified jurisdictions with varying levels of transparency, rule of law, and financial infrastructure, highlighting potential risks and control eventualities associated with financial crime.

Sanctions Compliance

  • Institutions are ensuring compliance with economic sanctions issued by authorities for key currencies, including the EU, OFAC, HMT, METI, and UN.
  • This includes monitoring transactions related to prohibited individuals, entities, or countries.

Cultural and Employee Conduct

  • Cultural and employee conduct have been prioritized, with institutions evaluating the effectiveness of their employee training programs.
  • Institutional culture regarding anti-financial crime measures has also been assessed, as well as controls in place to reduce the risk of criminal employee misconduct.

Bribery and Corruption Risk Assessment

  • Kiribati’s financial institutions have assessed the inherent risks associated with conducting predicate offences to money laundering by employees, vendors, or other parties.
  • This includes identifying potential vulnerabilities and implementing measures to mitigate these risks.

Product and Channel Analysis

  • Institutions have examined how different products and services are offered to clients and potential risks associated with these offerings.

Governance Framework Evaluation

  • The governance framework theme has seen Kiribati’s financial institutions evaluate the design and implementation of their anti-financial crime programs.
  • This includes identifying potential blindspots or deficiencies that could lead to risk.

Conclusion

These enhanced security measures demonstrate Kiribati’s commitment to combating money laundering and terrorist financing, ensuring a safer and more secure financial environment for its citizens.