Counter Terrorism and Transnational Organised Crime Act: Parallel Financial Investigations

Nauru’s authorities have taken a significant step in combating terrorism and transnational organized crime by introducing parallel financial investigations. This new regulation requires law enforcement agencies to conduct simultaneous financial probes alongside investigations into predicate offenses.

Predicate Offences Requiring Parallel Financial Investigation

The Nauru Police Force or any other law enforcement agency must carry out a parallel financial investigation when investigating the following predicate offences:

Participation in an organized criminal group and racketeering
Terrorism, including terrorism financing and proliferation financing
Trafficking in human beings and migrant smuggling
Sexual exploitation
Sexual exploitation of children
Illicit trafficking in narcotic drugs and psychotropic substances
Illicit arms trafficking
Illicit trafficking in stolen and other goods
Corruption and bribery
Fraud
Counterfeiting currency
Counterfeiting and piracy of products
Environmental offences, including criminal harvesting, extraction or trafficking in protected species of wild fauna and flora, precious metals and stones, other natural resources, or waste
Murder
Grievous bodily injury
Kidnapping
Illegal restraint and hostage-taking
Robbery or theft
Smuggling, including customs and excise duties and taxes
Tax offences, including direct and indirect taxes
Extortion
Forgery
Piracy
Insider trading and market manipulation

Financial Crime Linked to Predicate Offences

When investigating a financial crime, law enforcement agencies may discover evidence of predicate offences. In such cases, they must refer the information and relevant materials to the Nauru Police Force for further investigation.

Obligations of the Financial Intelligence Unit (FIU)

The FIU has the responsibility to report any suspicion or reason to believe that a predicate offence or financial crime has been committed. It must also analyze its findings and refer them to the Nauru Police Force or other law enforcement agencies.

Director of Public Prosecution’s Role

The Director of Public Prosecution may recommend parallel investigations when there is a reasonable belief or suspicion that a financial crime has been committed as part of or in furtherance of a predicate offence.

Implementation Responsibilities

The implementation of these regulations falls under the responsibility of various authorities, including:

Nauru Police Force
Financial Intelligence Unit (FIU)
Director of Public Prosecutions
Nauru Revenue Office
Nauru Customs Service
Reporting entities
Other law enforcement agencies

Identification and Tracing of Assets

Authorities will coordinate their efforts to identify, trace, and initiate the freezing and seizing of criminal property that is or may become subject to confiscation or suspected of being proceeds of crime.

Controlled Delivery

The Commissioner of Police or an authorized officer may approve controlled delivery in cases where there are reasonable grounds to suspect a predicate offence related to financial crime. This can include:

Allowing the entry, exit, or transit of suspects
Delivery of criminal property
Use of force to search vehicles or premises

Authorities will share information on a confidential basis without prejudice to ongoing investigations or prosecutions.

Maintenance of Records

Information, evidence, and other materials obtained during investigations must be preserved for a period of 7 years.