Financial Crime World

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Fiji Cracks Down on Money Laundering: New Offences Carried Steep Penalties

Introduction

Suva, Fiji - In a bid to combat the growing menace of money laundering in Fiji, authorities have warned that the offence is not to be taken lightly. Under the Proceeds of Crime (POC) Act, those convicted can face imprisonment terms of up to 20 years.

Financial Intelligence Unit at the Forefront

The Financial Intelligence Unit (FIU), a unit funded by the Reserve Bank of Fiji, has been at the forefront of the fight against money laundering. The FIU was established in 2006 under the Financial Transactions Reporting (FTR) Act 2004 and ensures the implementation of the FTR Act with its core function involving the receipt of reports, analysis of data submitted in these reports, and dissemination of intelligence to law enforcement agencies.

Money Laundering: A Serious Offence

Money laundering involves careful planning and sophisticated methods. The Court has given a higher sentencing tariff due to the seriousness of the offence, which can result in companies being charged and convicted, and fined up to $600,000.

Civil Forfeiture: A New Tool

The POC Act also includes civil forfeiture provisions, which allow the Court to grant an order to confiscate tainted property without the need to prove the guilt of a person. This is a simple process under the POC Act against the property and not the person.

Accountants: Key Players in the Fight Against Money Laundering

  • Accoun tants are known as “professional money launderers” and are being increasingly used by criminals for their services.
  • The FIU has warned that accountants should be aware of red flag indicators for possible money laundering activities, such as:
    • Unusual transactions
    • Requests for complicated business structures

Inter-Agency Partnership Crucial in Combating Crime

The battle against money laundering cannot be fought alone. Law enforcement agencies such as the Fiji Police Force, the Fiji Revenue and Customs Authority, and the Fiji Independent Commission Against Corruption are also crucial in this fight. The Reserve Bank of Fiji and the FIU provide the necessary AML regulatory, policy, and compliance framework.

Conclusion

The success of Fiji’s fight against money laundering is a result of effective implementation of the FTR Act by financial institutions and the concerted effort from everyone to protect Fiji’s financial system, borders, and people from abuse by criminals and money launderers.