Financial Crime World

FINANCIAL INSTITUTIONS IN AMERICAN SAMOA MUST ENSURE REGULATORY COMPLIANCE TO MAINTAIN SOUND AND STABLE SYSTEM

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The Central Bank of American Samoa has emphasized the importance of regulatory compliance for financial institutions in the territory, stating that its primary objective is to maintain a sound and reputable financial system.

Regulatory Compliance: A Top Priority

The bank’s Financial Supervision Department is responsible for supervising and regulating the financial system to safeguard the interests of depositors, creditors, policy holders, and unit holders. To achieve this goal, the department employs a prudential supervision approach, which involves:

  • Detecting early signs of weaknesses in financial institutions’ performances and overall financial conditions
  • Regular on-site reviews and analysis of financial information and reports provided by financial institutions

Supervisory Framework Guided by Key Legislation

The bank’s supervisory framework is guided by several key pieces of legislation, including:

  • The Central Bank of Samoa Act 2015
  • The Financial Institution Act 1996
  • The Insurance Act 2007
  • The Money Laundering Prevention Act 2007

Overview of American Samoa’s Financial System

As of January 31, 2018, American Samoa’s financial system consists of:

  • Four commercial banks
  • Six insurance companies
  • Four brokers
  • 17 insurance agents
  • The Samoa National Provident Fund
  • The Samoa Housing Corporation
  • The Development Bank of American Samoa
  • The Unit Trust of Samoa
  • 12 money transfer operators/restricted foreign exchange dealers
  • One money changer

Regulatory Requirements for Financial Institutions

Financial institutions in American Samoa must comply with a range of regulatory requirements, including:

  • Licensing
  • Capital adequacy
  • Liquidity
  • Risk management standards

Importance of Regulatory Compliance

Financial institutions are reminded that regulatory compliance is essential to maintaining confidence in the financial system and protecting the interests of customers and the public. Failure to comply with regulations can result in serious consequences, including:

  • Fines
  • Penalties
  • License revocation

Resources for Financial Institutions

For more information on regulatory requirements and guidelines for financial institutions in American Samoa, please visit the Central Bank’s website or contact its Financial Supervision Department directly.

Note: The list of licensed and authorized financial institutions is available online.