Financial Crime World

Drug Offences on the Rise: Nauru FIU Takes Action

Nauru is facing a growing concern regarding drug-related crimes, with cases on the rise in recent years. The Financial Intelligence Unit (FIU) has been working closely with various stakeholders to address this issue and prevent the financing of terrorism and proliferation.

New Technologies Pose New Risks


The FIU has also identified new technologies and business products as a growing threat. To combat this, Nauru has included Virtual Assets (VA) and Virtual Asset Service Providers (VASP) in its Anti-Money Laundering and Combating the Financing of Terrorism Act 2023.

Regulation of VAs and VASPs


Nauru has issued a policy document outlining the international and domestic requirements for VA and VASP regulation. Any VASP intending to operate in Nauru must comply with the required laws, including:

  • AML-CTF Act 2023
  • Business Names Registration Act 2018
  • Others

Public Education and Awareness


The FIU has published important laws, regulations, policies, guidelines, and notices on its website to ensure stakeholders and the general public are aware of these documents. The agency also works closely with reporting entities to disseminate this information.

Coordination with Supervisory Authorities


The FIU collaborates with Nauruan supervisory authorities and law enforcement agencies to identify specific risks and vulnerabilities and develop strategies to mitigate them. The agency has introduced a National Strategy for Anti-Money Laundering and Combatting the Financing of Terrorism 2022-2025, which sets out specific goals and objectives.

Public Private Partnership


The FIU has formed a Public Private Partnership (PP) with private sector members to combat money laundering, terrorism financing, and other financial crimes. This collaborative mechanism promotes information sharing, risk identification, and mitigation strategies.

Case Study: Forgery Allegation


In April 2023, the FIU received a request from the Secretary of Justice regarding an alleged forgery case at the Passport office involving an unemployed Nauru national. The agency is working closely with law enforcement authorities to investigate this matter.

Nauru’s Approach to Combating Crime


The FIU takes a collaborative approach in combating crime, ensuring all stakeholders are informed of current crime trends and patterns. The agency shares strategic analysis findings with stakeholders and encourages their contribution in finding appropriate solutions.

Conclusion

With drug-related crimes on the rise, Nauru is taking proactive measures to prevent the financing of terrorism and proliferation. By regulating new technologies and business products, promoting public education and awareness, and collaborating with stakeholders, the FIU is committed to ensuring a safer and more secure future for Nauru.