Drug Cases on the Rise: Nauru Takes Steps to Address Growing Concern
The Financial Intelligence Unit (FIU) in Nauru has sounded the alarm, warning that drug cases are escalating and need urgent attention. The tiny Pacific nation is not alone in this struggle; neighboring countries are also grappling with a growing concern.
Low Risk of Financial Sector Compromises
According to experts, the financial sector in Nauru poses relatively low risks, thanks to strict internal controls implemented by home jurisdictions. This is a significant factor in mitigating vulnerabilities and threats.
Emerging Threats
The FIU has also analyzed emerging threats from new technologies and business products, including:
- Virtual Assets (VA)
- Virtual Asset Service Providers (VASP)
These innovative entities have the potential to facilitate money laundering, terrorism financing, and proliferation financing.
Compliance with Anti-Money Laundering Act 2023
To combat these risks, Nauru has incorporated VA and VASP into its Anti-Money Laundering Act 2023. The country has also issued a policy document outlining international and domestic requirements for regulating these entities. Any VASP seeking to operate in Nauru must comply with the country’s laws, including:
- AML-TFS Act
- Business Names Registration Act
- And others
Coordination with Authorities
The FIU collaborates closely with supervisory authorities and law enforcement agencies to identify specific risks and vulnerabilities. This cooperation enables effective strategies to mitigate threats and combat financial crimes.
National Strategy for Anti-Money Laundering and Combating the Financing of Terrorism 2022-2025
Nauru has introduced a national strategy that outlines goals, objectives, and three committees with distinct roles. The FIU publishes important laws, regulations, policies, guidelines, and notices on its website to ensure stakeholders are informed.
Case Study: FIU Dissemination to Nauru Police Force
In a recent case, the FIU disseminated information related to alleged forgery to the Immigration Section under the Department of Justice and Border Control. This exemplifies the coordination between authorities in combating financial crimes.
Nauru’s Approach to Combatting Crimes
The FIU works closely with all stakeholders through:
- Anti-Money Laundering Officials Committee (AMLOC)
- Private Partners Committee (PPC)
To identify risks, vulnerabilities, and solutions. Nauru’s approach emphasizes collaboration among stakeholders, including law enforcement agencies, supervisory authorities, and the private sector.
Collaborative Approach
By sharing crime trends and patterns, strategic analysis findings, and relevant reports with all stakeholders, Nauru ensures a comprehensive response to addressing financial crimes. The country’s collaborative approach encourages involvement from all sectors of the community.
Recent Example: Alleged Forgery at Passport Office
In April 2023, the FIU received a request from the Secretary of Justice regarding alleged forgery at the Passport office involving an unemployed Nauru national who attempted to avoid payment for passport renewals.