Money Laundering and Terrorist Financing: The Dark Side of the Financial World

A new report has revealed that financial institutions are losing millions due to money laundering and terrorist financing activities. Despite efforts to detect and prevent these crimes, many institutions have failed to do so, and some have even been found to be actively engaged in these illegal activities.

Detection and Prevention Efforts

Training for Staff

The Samoa Money Laundering Prevention Task Force has acknowledged that the detection of these offenses can’t solely rely on financial institutions. Therefore, they will provide training for their staff to understand money laundering, terrorist financing, and proliferation financing.

Periodic Data Searches

The task force will also search its own data holdings periodically for indicators of money laundering, terrorist financing, or proliferation financing. If detected, they will take unilateral action or share the information with other agencies to disrupt, deter, and prevent these offenses.

Collaboration and Auditing

To minimize the risk of information silos failing to detect these crimes, the agencies will periodically collate their collective data and cross-match information. They will also audit the processes and effectiveness of financial institutions’ efforts to ensure they are being undertaken in the spirit of the law.

Deterrence, Disruption, and Prevention

Creating a Perception of Risk

The task force aims to create a genuine perception of risk among offenders and would-be offenders that they will be identified, caught, and punished. To achieve this, they will actively seek out and engage in activities that highlight the robustness of Samoa’s anti-money laundering systems.

Disruption Efforts

Disruption efforts may include prosecuting offenders for money laundering, terrorist financing, or proliferation financing, as well as confiscating illicit assets. The task force will also consider other approaches to reduce the harm caused by these offenses.

Prevention Strategies

Prevention strategies will involve developing tactics to stop others from following in the footsteps of previous offenders. The task force will regularly review intelligence on ML/TF/PF offending and formulate strategies to prevent repetition or commission of similar offenses.

Regular Testing and Cooperation

Regular System Testing

The Authority and the Task Force acknowledge that AML/CTF systems benefit from testing and correction, just like computer networks. They will ensure that their systems are functioning as intended by regular testing with corrective actions in place to correct identified deficiencies.

Cooperation among agencies is crucial in fighting profit-driven crime. The task force will share information and personnel freely in formal and informal arrangements to achieve this goal.

Focus on Facilitators

Targeting Facilitators

The fight against money laundering is most effective when applied to facilitators of these crimes, rather than individual predicate offenders. AML/CTF resources in Samoa will be targeted towards the facilitators of money laundering and those who engage in the laundering of other people’s proceeds.

High-Risk Areas

Regular Risk Assessments

In accordance with current FATF standards, Samoa will conduct regular assessments of ML/TF/PF risks. However, they acknowledge that certain money laundering activities may not just be a “risk” but a “certainty.” Task Force resources will be applied to known money laundering activities before moving on to lower-order risks.

Conclusion

The fight against money laundering and terrorist financing is ongoing, and it requires cooperation among agencies, regular testing of systems, and targeted efforts towards facilitators. The Samoa Money Laundering Prevention Task Force is committed to disrupting and preventing these crimes, and their efforts will have a significant impact on the country’s financial landscape.