Financial Crime World

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Financial Crime Prevention in Emerging Markets: A Step Forward for Samoa

In recent years, the Samoan government has taken significant strides to strengthen financial crime prevention measures and combat money laundering as part of a global initiative to promote standards of best practice in financial supervision and anti-money laundering measures.

A New Era for Financial Crime Prevention

In 1996, the Samoan government conducted a review of its offshore laws with the assistance of the Commonwealth Secretariat. The review led to significant changes being made to both the Offshore Banking and International Insurance Acts in 1998. The most notable new legislation resulting from the review is the Money Laundering Prevention Act 2000.

A Strong Anti-Money Laundering Regime

Samoa’s anti-money laundering regime, enacted on June 14, 2000, is based on the Commonwealth model and encompasses the benchmark Forty Recommendations of the Financial Action Task Force (FATF) on Money Laundering and is in compliance with international standards.

Key Features of the Act

The new regime includes definitions and provisions that are common to all parts of the law, ensuring consistency and clarity. Key features include:

  • The definition of “money laundering” as engaging in any transaction involving property that is the proceeds of crime.
  • The establishment of a Money Laundering Authority within the Central Bank of Samoa, responsible for receiving reports of suspicious transactions and referring them for investigation.
  • Mandatory obligations on financial institutions to implement “know your customer” principles and maintain business transaction records.
  • Currency reporting at the border, with penalties for failing to declare cash or negotiable bearer instruments exceeding SAT 10,000 (approximately US$3,000).
  • Mutual assistance in relation to money laundering, enabling cooperation between governments to ensure a legal and administrative framework exists for cross-border investigations.

Commitment to Fighting Money Laundering

Samoa’s commitment to combating money laundering is evident through its endorsement of the United Nations Programme Against Money Laundering prior to September 2000 and its membership of the Asia-Pacific Group (APG) on Money Laundering in June 2000. The jurisdiction has also welcomed the opportunity to be evaluated by the Asia Pacific Group on Money Laundering and the Offshore Group of Banking Supervisors, recognizing that such evaluations provide a valuable opportunity to obtain an independent assessment of its performance and identify areas for improvement.

A Strong Reputation

Samoa’s reputation as a responsible jurisdiction is built on its commitment to maintaining high standards in financial crime prevention. The country’s efforts to strengthen its anti-money laundering regime demonstrate its willingness to continuously review and improve its operations in the light of internationally recognized standards, ensuring a secure and stable financial environment for businesses and individuals alike.