Financial Crime World

Financial Crime in the Solomon Islands: FATF Evaluates AML/CTF Measures

Asia/Pacific Group on Money Laundering (APG) Publishes Mutual Evaluation Report

The Financial Action Task Force (FATF) and its Asia-Pacific affiliate, the Asia-Pacific Group on Money Laundering (APG), have published a Mutual Evaluation Report on the Solomon Islands’ progress in implementing anti-money laundering and counter-terrorist financing (AML/CFT) measures.

Background

The Solomon Islands, a member of the APG, has undergone an on-site evaluation to assess the effectiveness of its legal and regulatory framework for combating money laundering, terrorist financing, and related threats to the integrity of the international financial system. The evaluation was conducted in accordance with the FATF Recommendations and the Methodology for Assessing Technical Compliance.

Progress

According to the report, the Solomon Islands have made significant progress in several areas:

  • Legal and Regulatory Framework: The country has established and implemented most of the necessary legal and regulatory measures, including the Financial Transactions Reporting Act and the Proceeds of Crime Act.
  • Asset Recovery: The Solomon Islands have demonstrated some progress in the identification, confiscation, and recovery of proceeds of crime.
  • International Cooperation: The country has shown improvements in international cooperation by signing various conventions, such as the United Nations Conventions against Transnational Organized Crime and the United Nations Convention against Corruption.

Challenges

However, the report also highlights several areas where the country needs to improve:

  • Risk Assessment: The Solomon Islands need to conduct a comprehensive analysis of money laundering and terrorist financing risks and create a risk-based approach to regulating financial institutions and designating other relevant sectors.
  • Customer Due Diligence (CDD): The country needs to improve its CDD measures to reduce the risk of money laundering and terrorist financing, including the implementation of targeted financial sanctions.
  • Supervision and Enforcement: The Solomon Islands need to enhance the capacity and resources of their regulatory and law enforcement agencies to effectively supervise financial institutions and enforce AML/CFT laws.

Conclusion

In conclusion, the Solomon Islands have made progress in several areas but face challenges in others. The FATF and the APG have recommended that the country address these issues to effectively combat financial crime and prevent the misuse of its financial system for money laundering and terrorist financing activities.

Further information on the FATF and its member countries, publications, events, and contact details can be found on the organization’s official website.