American Samoa’s Efforts to Combat Money Laundering Leave Much to Be Desired, Experts Say

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The Financial Action Task Force (FATF) has recently assessed the efforts of American Samoa to combat money laundering, revealing significant room for improvement. The report highlights that the territory is only partially compliant with international anti-money laundering standards in 15 out of 40 evaluated areas.

Areas for Improvement

National Cooperation and Coordination

• American Samoa was found to be largely or non-compliant in several key areas, including national cooperation and coordination.
• Experts have identified inadequate risk assessment procedures as a major weakness.
• The territory’s laws and regulations do not provide adequate powers for supervisors and law enforcement agencies to effectively combat money laundering.

Confiscation and Provisional Measures

• American Samoa was found to be largely or non-compliant in this area, which is critical for effective anti-money laundering measures.

Financial Intelligence Units

• The report highlights the need for improvement in the territory’s financial intelligence units, including enhanced cooperation with other countries and improved capacity for sharing financial intelligence and conducting investigations.

Implications

American Samoa’s lack of progress in implementing effective anti-money laundering measures has significant implications for the territory’s financial system and economy. Without robust measures in place, the risk of money laundering and terrorist financing remains high, posing a threat to international stability and security.

Threats to International Stability and Security

• The report highlights that American Samoa’s lack of progress in implementing effective anti-money laundering measures poses a significant threat to international stability and security.

Recommendations

To address these weaknesses, experts are calling for the implementation of more robust anti-money laundering measures, including:

• Increased Transparency and Accountability in the financial sector.
• Improved Risk Assessment and Management Procedures to identify and mitigate potential risks.
• Enhanced Cooperation between Law Enforcement Agencies and Financial Institutions.

By implementing these measures, American Samoa can improve its ability to assess and manage risks, implement effective customer due diligence procedures, and maintain accurate records. This will help to reduce the risk of money laundering and terrorist financing, ultimately contributing to international stability and security.