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Fiji Financial Intelligence Unit Issues Alert Notices and Directives to Protect Financial System

The Fiji Financial Intelligence Unit (FIU) has taken significant steps to protect the country’s financial system from potential threats by issuing seven Alert Notices and 11 Directives to financial institutions in 2015.

What are Alert Notices?

Alert Notices were issued to notify financial institutions of individuals and entities suspected of being involved in financial crimes, including possible advance fee fraud. These notices contain information that requires enhanced due diligence and scrutiny by financial institutions.

What are Directives?

In addition to the Alert Notices, the FIU also issued Directives to financial institutions to take specific steps to prevent or detect financial crimes. These directives included requirements for:

  • Enhanced customer due diligence
  • Establishing the source of funds
  • Verifying the ultimate destination of transactions

The FIU has powers under the Financial Transaction Reporting Act (FTR Act) to issue these directives to ensure compliance with the Act and facilitate investigations by law enforcement agencies.

Specific Directives Issued in 2015

Some of the specific directives issued in 2015 included:

  • Commercial banks were required to undertake enhanced due diligence on customers, establish the source of funds, and identify any third-party transactions.
  • Financial institutions were instructed to seek approval from the FIU before proceeding with certain transactions.

Purpose of Alert Notices and Directives

The FIU issues these Alert Notices and Directives to protect the financial system from being used by adversely reported individuals and business entities. Financial institutions are advised to circulate these notices internally with caution due to their sensitive and confidential nature.

Statistics

In 2015, a total of 41 individuals and one entity were involved in the Alert Notices issued by the FIU. The majority of the notices related to individuals suspected of being linked to possible advance fee fraud.

Conclusion

The Fiji Financial Intelligence Unit is responsible for collecting, analyzing, and disseminating financial intelligence to prevent and detect financial crimes. Its efforts are crucial in protecting Fiji’s financial system from illegal activities and maintaining its integrity.

Alert Notices Issued by FIU in 2015

  • January 7: Commercial banks and money remittance service providers were alerted about possible advance fee fraud.
  • March 6: Commercial banks and money remittance service providers were alerted again about possible advance fee fraud, this time involving investment fraud as well.
  • May 13: Commercial banks and money remittance service providers were alerted about possible advance fee fraud for the third time in 2015.
  • April 2: Commercial banks and money remittance service providers were alerted about attempts to exchange large quantities of demonetized foreign currency and commemorative notes in Fiji.
  • June 22: Stolen foreign currency was reported stolen from a local residence, prompting an alert notice.
  • August 6: Commercial banks and money remittance service providers were alerted about possible advance fee fraud for the fourth time in 2015.
  • September 29: Stolen foreign currency was reported stolen from a local commercial bank outlet, leading to an alert notice.

Directives Issued by FIU in 2015

  • March 20: Commercial banks were instructed to undertake enhanced due diligence on customers, establish the source of funds, and verify the ultimate destination of transactions.
  • March 26-31: Similar directives were issued to commercial banks, with slight variations in each instruction notice.
  • May 13: A directive was issued to commercial banks to seek approval from the FIU before proceeding with any transaction.
  • June 25: Commercial banks were instructed to undertake enhanced due diligence on customers and establish the source of funds.
  • July 31: Commercial banks were directed to verify the ultimate destination of transactions and identify any third-party transactions.
  • August 17-25: Similar directives were issued to commercial banks, with slight variations in each instruction notice.
  • September 24: Commercial banks were instructed to seek approval from the FIU before proceeding with any transaction.
  • December 2: A directive was issued to commercial banks to verify the ultimate destination of transactions and identify any third-party transactions.