Financial Crime World

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Nauru’s National Strategy for Anti-Money Laundering and Combatting Terrorism: Enhancing Capacity and Collaboration

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The Republic of Nauru has unveiled a comprehensive national strategy to combat money laundering and terrorist financing, aimed at strengthening its anti-money laundering (AML) and combating the financing of terrorism (CFT) regime.

Key Objectives

The strategy focuses on five key objectives:

  • Developing skills and capacity of law enforcement agencies through inter-agency training and online self-paced learning opportunities.
  • Improving data collection mechanisms on AML/CFT issues by sectors, including conducting awareness campaigns and establishing periodic information collection.
  • Enhancing collaboration among stakeholders to ensure compliance with the strategy at all levels.

Action Plan

The action plan includes several key initiatives:

  • Conducting inter-agency training on AML/CFT issues to promote shared experiences and on-the-job learning.
  • Offering online self-paced training on AML/CFT without cost, courtesy of international organizations.
  • Identifying training opportunities for technical skills, such as analytical and supervisory training, with assistance from regional and international partners.

Data Collection Mechanisms

The strategy aims to improve data collection mechanisms by sectors, including:

  • Conducting awareness campaigns with the AML Committees on the obligation to record and collect statistical information on AML/CFT activities.
  • Developing a template with guidelines for collecting statistical information on AML/CFT.
  • Establishing periodic information collection (every 3-6 months) by the Financial Intelligence Unit (FIU).
  • Exploring technology options for improving data collection, sharing, and storage.

Coordination and Collaboration

The strategy emphasizes the importance of coordination and collaboration among stakeholders to ensure compliance at all levels. It designates an authority or mechanism responsible for coordinating actions to assess risks and allocate resources efficiently.

FATF Recommendations

The strategy incorporates several recommendations from the Financial Action Task Force (FATF), including:

  • Assessing risks and applying a risk-based approach to prevent or mitigate money laundering and terrorist financing.
  • Designating an authority or mechanism to coordinate actions to assess risks and allocate resources efficiently.
  • Identifying, assessing, and understanding proliferation financing risks for the country.

Conclusion

The National Strategy for Anti-Money Laundering and Combatting Terrorism is a critical step towards enhancing Nauru’s AML/CFT regime and combating the scourge of money laundering and terrorist financing. The strategy’s focus on capacity building, data collection, and coordination among stakeholders will help to strengthen Nauru’s efforts in this area.

Source: Ministry of Finance and Economic Development, Republic of Nauru. Date: March 2023.