Financial Crime World

International Organised Crime Groups Use Pacific Island Nations as Transit Point

Report Highlights Samoa’s Attractiveness to Criminal Groups

A recent report has shed light on how international organised crime groups (IOCGs) are using Pacific island nations, including Samoa, as a transit point for their illegal activities. The report highlights several factors that make Samoa an attractive destination for these criminal organisations.

Factors Contributing to Samoa’s Attractiveness

  • Geographic location: Samoa’s strategic position in the Pacific makes it an ideal hub for IOCGs to move goods and money.
  • Stable economy and currency: Samoa’s economic stability and strong currency make it an attractive destination for criminal groups looking to launder money.
  • Low levels of violent and petty crime: The low crime rate in Samoa means that IOCGs are less likely to be detected by law enforcement.
  • Advanced banking system: Samoa’s sophisticated financial system allows for easy movement of funds, making it an attractive destination for criminal groups.

Need for Effective Anti-Money Laundering and Counter-Terrorism Financing Systems

IOCGs need a country with a financial system that can facilitate their illegal activities. To reduce the attractiveness of Samoa to these groups, effective anti-money laundering and counter-terrorism financing (AML/CTF) systems are crucial. The report highlights several areas where Samoa’s AML/CTF system needs improvement.

Areas for Improvement

  • Lack of comprehensive risk-based approach: Samoa lacks a robust approach to allocating resources and implementing measures to prevent or mitigate money laundering and terrorist financing.
  • Technical deficiencies in legislation: Various laws, including the International Companies Act 1988, Trusts Act 2014, Companies Act 2001, MLP Act 2007, and MLP Regulations 2009, need to be updated to address technical deficiencies.

Commitment from Samoan Authorities

To address these issues, the Samoan authorities have committed to:

  • Commencing engagement with the Transnational Crime Unit (TCU) and other sources to identify the nature and extent of IOCGs operating in Samoa
  • Formulating steps to reduce the attractiveness of Samoa as a place for IOCGs to do business
  • Undertaking a comprehensive risk-based approach to allocating resources and implementing measures to prevent or mitigate money laundering and terrorist financing
  • Strengthening the legal framework by addressing technical deficiencies and improving the robustness of the AML/CTF system

Conclusion

Addressing these issues is crucial in reducing the attractiveness of Samoa for IOCGs and preventing the country from being used as a transit point for illegal activities. The report highlights that effective AML/CTF systems are essential in combating international organised crime and ensuring the stability of Samoa’s financial system.