Money Laundering and Financial Terrorism Risk Assessment in Solomon Islands

Non-Enactment of Anti-Corruption Bill Law

The Anti-Corruption Bill law has not been enacted, and its provisions need to be fully implemented. This lack of enforcement hinders the country’s ability to effectively combat money laundering and financial terrorism.

• Key Issue: The non-enactment of the Anti-Corruption Bill law creates a vulnerability in Solomon Islands’ fight against money laundering and financial terrorism.
• Impact: Without the implementation of this law, the risk of money laundering and financial terrorism increases, threatening the country’s stability and security.

Need for Counter Terrorism and Financing of Terrorism Programs

There is an urgent need to pursue Counter Terrorism and Financing of Terrorism programs. The Solomon Islands government needs to increase capacity to interdict possible terrorists, address resource constraints, corruption, lack of training for law enforcement and border security officials, and overcome geographic and infrastructure challenges.

• Key Issues:
  • Resource constraints
  • Corruption
  • Lack of training for law enforcement and border security officials
  • Geographic and infrastructure challenges
• Impact: These issues hinder the country’s ability to effectively combat money laundering and financial terrorism, making it difficult to prevent terrorist activities.

Terrorism Financing

There is limited information or statistical data on terrorism, terrorist-related activities, or financing of terrorism in Solomon Islands. Some minor “homegrown” terrorism activities have occurred since 1999, but these were controlled quickly. The primary focus of investigators has been to eradicate any terrorism-related offenses.

• Key Issues:
  • Limited information and statistical data on terrorism
  • Minor “homegrown” terrorism activities
• Impact: This lack of information and minor incidents do not necessarily indicate a significant risk, but rather highlight the need for improved monitoring and prevention measures.

Vulnerabilities and Concerns

Capacity, geographic and infrastructure challenges, population dynamics, laws, cooperation and coordination, international cooperation, and courts and judiciary are areas of vulnerability and concern in Solomon Islands’ fight against money laundering and financial terrorism.

• Key Issues:
  • Capacity: Resource constraints, corruption, lack of training for law enforcement and border security officials
  • Geographic and Infrastructure: Effective policing of borders is a difficult task requiring more resources and capabilities than available
  • Population: Unemployment rate may lead to greater concerns of funds generating predicate crimes being committed, including financing of terrorism
  • Laws: The government can prosecute terrorists and the financiers of terrorism under the Counter Terrorism Act 2009 (CTA 2009)
  • Cooperation and Coordination: Law enforcement bodies lack sufficient interagency cooperation and information sharing capabilities regarding terrorism financing
  • International Cooperation: Solomon Islands should seek to increase law enforcement capacity through bilateral and multilateral assistance programs
  • Courts and Judiciary: The judiciary is likely equipped to hear cases involving terrorism and terrorism financing, but may need additional training

Recommendations

To address the vulnerabilities and concerns identified, the following recommendations are made:

• Strengthen counter-terrorism and financing of terrorism programs: Enhance capacity to interdict possible terrorists, improve border security and policing capabilities, and increase international cooperation and assistance.
• Increase capacity to interdict possible terrorists: Address resource constraints, corruption, lack of training for law enforcement and border security officials, and overcome geographic and infrastructure challenges.
• Enhance cooperation and coordination among law enforcement bodies: Improve information sharing capabilities regarding terrorism financing.
• Provide training for judiciary on handling cases involving terrorism and terrorism financing: Ensure the judiciary is equipped to handle these complex cases.