Financial Crime World

Samoa’s Illicit Activities Attract International Organized Crime Groups

In a shocking revelation, Samoa has been identified as a transit point for international organized crime groups (IOCGs), taking advantage of the country’s geographic location, stable economy, advanced banking system, and reputation for secrecy.

Why IOCGs are attracted to Samoa

  • Samoa’s geographic location allows easy movement of goods and money
  • Stable economy and advanced banking system facilitate illegal activities
  • Low levels of violent and petty crime, as well as lack of effective law enforcement, make it an attractive destination

However, experts warn that this situation is not sustainable and can have serious consequences for the country and its people. “An effective anti-money laundering (AML) and combating the financing of terrorism (CFT) system has the potential to reduce the attractiveness of Samoa for IOCGs,” said a senior official.

Addressing the issue

To address this issue, Samoan authorities will:

  • Engage with international partners through the Transnational Crime Unit and other sources to identify the nature and extent of IOCG activities in the country
  • Formulate steps to reduce Samoa’s attractiveness as a destination for these groups

Assessing Risks and Applying a Risk-Based Approach

The country’s risk assessment process has been criticized for being inadequate. To address this issue, Samoan authorities will:

  • Undertake a comprehensive risk assessment process that considers the risks identified by law enforcement and the private sector
  • Implement a risk-based approach to allocating resources and implementing measures to prevent or mitigate money laundering and terrorist financing

The country’s legal framework has been identified as needing improvement to effectively combat IOCGs. To address these issues, Samoan authorities will:

  • Begin a process of legislative reform, including amending existing laws such as:
    • International Companies Act 1988
    • Trusts Act 2014
    • Companies Act 2001
    • MLP Act 2007
    • MLP Regulations 2009

Action Items

  • Engage with international partners to identify IOCG activities in Samoa
  • Formulate steps to reduce Samoa’s attractiveness as a destination for IOCGs
  • Undertake comprehensive risk assessment process
  • Implement risk-based approach to allocating resources and implementing measures to prevent or mitigate money laundering and terrorist financing
  • Strengthen legal framework by amending existing laws

By addressing these issues, Samoa can reduce its attractiveness to IOCGs and protect its people and economy from the negative consequences of illicit activities.