Financial Crime World

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Fiji Tackles Financial Crime with Strengthened Banking Regulations

The Financial Intelligence Unit (FIU) in Fiji has implemented a range of regulations aimed at combating financial crime, including money laundering and terrorist financing.

New Measures to Combat Financial Crime

The new measures require banks and finance institutions to take several steps to identify and prevent such illegal activities. Under the Financial Transactions Reporting Act, all banks and finance or credit institutions in Fiji are required to comply with five key obligations:

  • Identify and Verify Customers: Banks must identify and verify their customers, ensuring that accounts are opened and maintained in the true name of the customer. This includes verifying official identification documents, such as passports and driver’s licenses.
  • Monitor Transactions: Banks must monitor their customers’ transactions to ensure that they are consistent with the customer’s background and known activities. This involves scrutinizing transactions for any suspicious activity, including those above $5,000 or international electronic fund transfers.
  • Maintain Records: Financial institutions must maintain proper records of their customers’ identity, transactions, and reports made to the FIU. These records must be kept for a minimum period of five years and be readily available for inspection by law enforcement agencies.
  • Report Suspicious Transactions: Banks are required to report all suspicious transactions to the FIU, including attempted transactions. They must also report any international electronic fund transfers or transactions above $5,000 made on behalf of a customer.
  • Implement Internal Controls: Financial institutions must implement adequate internal controls and systems to prevent money laundering and terrorist financing. This includes appointing a Compliance Officer to ensure compliance with regulations, regular reviews of anti-money laundering policies and procedures, and adequate recruitment procedures for staff.

Guidelines and Policy Advisories

To help banks comply with these regulations, the FIU has issued several guidelines and policy advisories. These include:

  • Customer Identification and Verification: Guidelines on customer identification and verification.
  • Suspicious Transaction Reporting: Guidelines on suspicious transaction reporting.
  • Record Keeping: Advice on record keeping.
  • Dealing with Higher-Risk Countries: Guidance on dealing with higher-risk countries.
  • Establishing the Source of Funds: Advice on establishing the source of funds.

Strengthened Banking Regulations

Fiji’s strengthened banking regulations are aimed at preventing financial crime and protecting the country’s financial system from being used for illegal activities. By implementing these measures, banks can help maintain public trust and confidence in Fiji’s financial institutions.