Financial Crime World

Here is the article in markdown format:

National Strategy for Anti-Money Laundering and Combatting the Financing of Terrorism 2022-2025

The Republic of Nauru has outlined a comprehensive strategy to combat money laundering and terrorist financing. This article summarizes key points from Recommendation 1, which deals with assessing risks and applying a risk-based approach.

Key Points: Risk Assessment and Mitigation

According to the National Strategy, countries should:

Identify, Assess, and Understand Money Laundering and Terrorist Financing Risks

  • Countries must identify, assess, and understand the money laundering and terrorist financing risks for their country.
  • These risks should be assessed on a regular basis to ensure that measures are effective in preventing or mitigating them.

Take Action to Mitigate Identified Risks

  • Countries should take action to mitigate these risks effectively, including designating an authority or mechanism to coordinate actions and allocate resources efficiently.
  • A risk-based approach (RBA) is essential for ensuring that measures to prevent or mitigate money laundering and terrorist financing are commensurate with the identified risks.

Identify, Assess, and Understand Proliferation Financing Risks

  • Countries should also identify, assess, and understand the proliferation financing risks for their country, which refers strictly to the potential breach of targeted financial sanctions obligations.
  • These risks must be addressed through effective measures to prevent or mitigate them.

Implementation Timeline

The National Strategy outlines specific milestones that are expected to be achieved by certain dates:

2023 Milestones

  • September: Completion of the legislative drafting project
  • May-June: Establishment of the AMLGC, AMLOC, and the PPP for better collaboration
  • June: Enhanced Border Currency Reporting
  • July-August: Complete preparations for second Mutual Evaluation (ME)
  • September: Implementation of targeted financial sanctions

By following this strategy, the Republic of Nauru aims to effectively combat money laundering and terrorist financing, while also addressing proliferation financing risks.