Financial Crimes Rampant in Kiribati, Reports Suggest

A recent investigation has uncovered a surge in financial crimes in Kiribati, with tax evasion and cyber-enabled fraud being common occurrences in the small Pacific nation.

Remoteness and Limited Banking Services Create Opportunities for Criminals

Kiribati’s remoteness and poor banking services have made it an attractive haven for criminal actors.
The country’s limited data on financial crimes has raised concerns about the effectiveness of its measures to combat money laundering and terrorist financing.

Organized Crime a Growing Concern

Small, loosely organized criminal networks operate locally in Kiribati, involved in human trafficking, fauna crime, particularly illegal, unreported, and unregulated (IUU) fishing.
There is no evidence of organized crime within the state apparatus, but corruption is a significant problem, particularly regarding resource access.

Leadership and Governance

Kiribati’s government has been criticized for its lack of oversight in preventing corruption.
The country’s reliance on foreign donors has created opportunities to enhance compliance and improve governance, but petty corruption and nepotism remain widespread.
Kiribati is a party to several international conventions, including the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), but it has not ratified the UN Firearms Protocol.

Criminal Justice and Security

The report highlights challenges facing Kiribati’s judicial system, including corruption and conflicts of interest within the judiciary.
The country’s detention system is plagued by inadequate resources, resulting in poor conditions and security issues within prisons.
The police force has established units to counter organized crime, but they lack equipment and skills to identify drug types, relying on collaboration with partners for drug seizures.

Economic and Financial Environment

Kiribati’s economic regulatory environment is vulnerable to state capture by economic predators due to the country’s high dependence on foreign aid and remittances from overseas workers.
The report notes that the country lacks skilled workers, weak infrastructure, and remoteness from international markets, constraining economic development.

The report highlights the lack of victim and witness support structures in Kiribati, as well as the absence of preventive methods to counter organized crime.
However, the country participates in international crime prevention programs and receives support from New Zealand to develop a more preventive approach to policing.

Conclusion

The report suggests that Kiribati’s limited resources, corruption, and lack of capacity to combat financial crimes make it an attractive haven for criminal actors. The country’s leaders must take concrete steps to address these issues and ensure the rule of law is upheld in order to protect its citizens and maintain a stable economy.