Tax Evasion and Cybercrime Rampant in Kiribati

Kiribati, a small Pacific island nation, has been grappling with widespread tax evasion and cyber-enabled financial crimes. The country’s lack of robust anti-money laundering systems and limited resources have made it an attractive haven for criminal activity.

Contributing Factors

• Remote location, poor banking services, and lack of accessibility
• Limited resources and inadequate anti-money laundering systems
• Corruption and nepotism within the government and judiciary
• Heavy reliance on foreign aid and remittances from overseas workers

Types of Crimes

• Tax evasion
• Cyber-enabled financial crimes
• Human trafficking
• Fauna crime
• Petty corruption and embezzlement of development project funds

Challenges in Combating Crime

• Limited resources and equipment for the police force
• Vulnerability to poaching and illegal activity due to remote location and limited patrol capabilities
• Inefficient judicial system plagued by corruption and conflicts of interest

Economic Environment

• Heavy reliance on foreign aid and remittances from overseas workers
• Lack of skilled workers, weak infrastructure, and remoteness from international markets
• Vulnerability to state capture by economic predators

Efforts to Strengthen Anti-Money Laundering System

• Establishment of a financial intelligence unit
• Attempts to strengthen anti-money laundering systems

Conclusion

Tax evasion and cyber-enabled financial crimes are significant problems in Kiribati, which requires concrete steps to address these challenges. The government must work towards improving the country’s anti-money laundering system, strengthening its judiciary, and addressing corruption and organized crime.