Financial Crime World

Solomon Islands Financial Intelligence Unit Launches National Risk Assessment to Combat Money Laundering and Terrorism Financing

The Solomon Islands Financial Intelligence Unit (SIFIU) has launched its second major Anti-Money Laundering and Combating Financing of Terrorism (AML/CFT) National Risk Assessment (NRA) program, which is expected to take up to six months to complete. The exercise requires the cooperation of both the private and public sectors.

Importance of the NRA

The importance of the NRA was highlighted by Central Bank of Solomon Islands (CBSI) Governor Denton Rarawa in his opening address at the workshop. He emphasized that mitigating current risks associated with money laundering and terrorism financing activities worldwide is crucial for the country’s reputation and credibility.

  • Conducting this NRA will help meet compliance requirements under international standards or obligations, which enhances the country’s reputation around the world.
  • A credible reputation would attract genuine investments and deter carpet baggers, scammers, and fly-by-night investors from entering the country.

Workshop Objectives

The workshop was conducted by Asian Development Bank (ADB) consultant and financial intelligence expert Neil Jen Sen, with the support of SIFIU officials and CBSI. The objectives of the workshop were to:

  • Introduce the NRA process and its importance
  • Identify potential risks associated with money laundering and terrorism financing in Solomon Islands
  • Develop a comprehensive report outlining the findings and recommendations

Outcomes and Next Steps

The outcomes of the workshop will be put together in a report to be used by stakeholders, particularly those in law enforcement agencies. Stakeholders who attended the workshop included government ministries, the Royal Solomon Islands Police Force (RSIPF), the financial sector, and private sector representatives.

  • The report will be used as a guide for implementing recommendations to mitigate identified risks
  • SIFIU Director Jimmy Sendersley emphasized that the NRA is currently a top priority under the Financial Action Task Force (FATF) recommendations

Future Plans

Solomon Islands is set to undergo its second Mutual Evaluation by the Asia-Pacific Group on Money Laundering (APG) in 2018. The NRA program will help the country prepare for this evaluation and demonstrate its commitment to combating money laundering and terrorism financing.

Overall, the National Risk Assessment program is a crucial step towards enhancing Solomon Islands’ reputation and credibility in the global fight against money laundering and terrorism financing.