Financial Crime World

Drug Offences on the Rise in Nauru

A growing concern has emerged in Nauru regarding drug offences, with reports indicating a significant increase in illegal drug activity in the region.

Financial Sector Risks Low, but New Technologies Pose Threats

According to intelligence sources, financial sector risks are relatively low due to strict internal controls implemented by home jurisdictions of agencies. However, strategic analysis has identified new technologies and business products as potential threats and vulnerabilities.

Combating Money Laundering and Terrorist Financing

To address these concerns, Nauru has incorporated Virtual Assets (VA) and Virtual Asset Service Providers (VASP) into its Anti-Money Laundering (AML) and Countering Financing of Terrorism (CFT) framework. The country has issued a Policy document outlining international and domestic requirements for VASPs, which must comply with laws including the AML-TFS Act 2023 and other relevant legislation.

Financial Intelligence Unit’s Efforts

The Financial Intelligence Unit (FIU) has not identified any operational VASPs in Nauru to date. However, the FIU has published a policy document on Virtual Assets to ensure transparency and accountability for stakeholders and the public.

The FIU works closely with supervisory authorities and law enforcement agencies to identify specific risks and vulnerabilities in Nauru. The unit has introduced a National Strategy for Anti-Money Laundering and Combatting the Financing of Terrorism 2022-2025, which sets out specific goals and objectives.

Committees Working Together

The strategy involves three committees:

  • AML Governance Committee: Works to share information and identify risks
  • AML Officials Committee: Identifies mitigating strategies for AML/CFT risks
  • Private Partners Committee: Collaborates with private sector stakeholders to address vulnerabilities

These committees work together to share information, identify risks, and find mitigating strategies.

Public Awareness and Education

The FIU publishes important laws, regulations, policies, guidelines, and notices on its website to ensure stakeholders and the public are aware of these documents. The unit has disseminated case studies to law enforcement authorities, including a recent case involving alleged forgery at the Passport office.

Community Involvement

Nauru’s approach to combating crime involves close collaboration with all stakeholders through committees such as AMLOC and PPC. The strategic analysis findings, including the National Risk Assessment 2023 and other relevant reports, are shared with stakeholders to ensure awareness of current crime trends and patterns in Nauru.

The country is committed to ensuring all sectors of the community contribute to finding appropriate means to combat crimes and address threats and vulnerabilities.