Financial Crime World

Samoa’s Paradise for Criminals Exposed

A recent investigation has revealed that Samoa, a popular tourist destination in the Pacific Islands, is being used by international organized crime groups (IOCGs) as a transit point for their illegal activities. The country’s geographic location, stable economy, low levels of violent and petty crime, advanced banking system, and reputation as a secrecy haven have made it an attractive hub for criminal organizations.

A Haven for Criminal Organizations

According to sources, IOCGs are drawn to Samoa’s financial system, which allows them to move goods and money undetected. The country’s lack of effective anti-money laundering (AML) and counter-terrorism financing (CTF) measures has created an environment conducive to illegal activity.

Authorities Acknowledge Intelligence Gap

Samoa’s authorities have acknowledged the intelligence gap in their understanding of IOCGs’ activities and have pledged to work on identifying sources of intelligence to fill these gaps.

Government Action Plan

In response, Samoa’s government has committed to taking action to reduce the country’s attractiveness as a haven for criminal organizations. This includes:

  • Commencing engagement with the Transnational Crime Unit (TCU) and other sources to understand the nature and extent of IOCGs’ operations in Samoa
  • Formulating steps to reduce the country’s appeal to IOCGs

Weaknesses in AML/CTF System Identified

The report also highlights several weaknesses in Samoa’s AML/CTF system, including:

  • The lack of a comprehensive risk-based approach to allocating resources and implementing measures to prevent or mitigate money laundering and terrorist financing (ML/TF)
  • Insufficient monitoring of AML/CTF compliance among financial institutions and designated non-financial businesses and professions
  • Weak customer due diligence measures
  • Lack of explicit obligations for financial institutions to assess risks and implement risk mitigation measures

Commitment to Addressing Deficiencies

To address these weaknesses, Samoa’s authorities have committed to:

  • Conducting a comprehensive review of its AML/CTF system
  • Implementing a risk-based approach to allocating resources and implementing measures to prevent or mitigate ML/TF
  • Strengthening customer due diligence measures
  • Enhancing monitoring of AML/CTF compliance

Addressing Technical Deficiencies

Additionally, Samoa’s government has pledged to address technical deficiencies in its legislation related to targeted financial sanctions (TFS) and weapons proliferation financing.

Conclusion

The revelation that Samoa is being used as a transit point for IOCGs highlights the need for strengthened AML/CTF measures and increased cooperation between governments to combat international organized crime.