Financial Crime World

Drug Offences on the Rise: Nauru Takes Steps to Address Growing Concern

Nauru, April 2023 - The Financial Intelligence Unit (FIU) has reported a significant increase in drug-related cases in the region, highlighting the need for enhanced measures to combat money laundering and terrorist financing.

Rise in Drug Offences Poses Growing Concern

According to the FIU’s latest strategic analysis, the rise in drug offences poses a growing concern not only for Nauru but also for other countries in the region. To mitigate this risk, the FIU has implemented strict internal controls and regulations to prevent financial institutions from being exploited by criminal elements.

New Technologies and Business Products: A New Threat

The report also highlights the increasing threat posed by new technologies and business products, such as Virtual Assets (VA) and Virtual Asset Service Providers (VASP). Nauru has taken a proactive approach by including VA and VASP in its Anti-Money Laundering and Combating the Financing of Terrorism Act 2023.

  • The FIU has issued a Policy document outlining international and domestic requirements for VASPs operating in Nauru.
  • Any VASP intending to operate in the country must comply with local laws, including the AML-CTF Act 2023, Business Names Registration Act 2018, and others.

Coordination with Supervisory Authorities and Other Authorities

The FIU works closely with supervisory authorities, law enforcement agencies, and other stakeholders through committees such as:

  • Anti-Money Laundering Governance Committee (AMLGC)
  • AML Officials Committee (AMLOC)
  • Private Partners Committee (PPC)

National Strategy for Anti-Money Laundering and Combating the Financing of Terrorism

The FIU has also introduced a National Strategy for Anti-Money Launderling and Combating the Financing of Terrorism 2022-2025, which sets out specific goals and objectives. The strategy aims to formalize Nauru’s approach in dealing with money laundering, terrorist financing, proliferation financing, and other financial crimes.

Case Study: FIU Dissemination to Nauru Police Force

In a recent case study, the FIU disseminated information to the Nauru Police Force regarding an alleged forgery incident at the Passport office. The collaboration between the FIU and law enforcement agencies demonstrates the importance of coordination in combating financial crimes.

Nauru’s Approach to Combat Crimes

Nauru’s approach to combatting financial crimes emphasizes the importance of cooperation among all stakeholders. The FIU shares crime trends and patterns with stakeholders, who are then expected to contribute to finding appropriate solutions.

  • The collaborative approach ensures that all sectors of the Nauruan community are involved in combating financial crimes.
  • Making it a vital step towards protecting the country from money laundering, terrorist financing, and other financial crimes.