Financial Crime World

Fiji Authorities Crack Down on Financial Crimes: $220 Million Worth of Suspected Frauds Detected Last Year

A Staggering Discovery

In 2017, Fiji’s Intelligence Unit made a significant discovery, detecting a whopping $220 million worth of suspected tax crimes, money laundering activities, and other fraudulent financial crimes. This major crackdown on financial crimes highlights the efforts of the authorities to combat fraud and ensure transparency in business dealings.

Collaboration between Agencies

The Intelligence Unit issued 317 intelligence case dissemination reports to the Fiji Revenue and Customs Service, with the latter being the largest beneficiary, accounting for over 70 percent of the proactive “whistle-blower” reports. The two agencies met recently to discuss opportunities to strengthen tax and customs compliance and fraud investigations, including stronger collaboration and networking between them.

Key Findings

  • The revenue service used the unit’s information to investigate an additional 1,279 individuals and businesses involved in tax and customs violation cases.
  • The referrals resulted in total tax and penalties assessed at $6.6 million, with 21 percent of it affecting businesses dealing in wholesale and retail motor vehicles.

Profiling Suspected Tax Evaders

Fiji Revenue and Customs Service CEO Visvanath Das emphasized the importance of profiling suspected tax evaders and investigating trade-based money laundering involving incorrect declaration of goods’ value and related financial crimes. He also praised the unit’s referral reports for uncovering fraudulent acts where businesses fail to pay their fair share of taxes.

Strengthening Cooperation

Two Revenue and Customs Service officers are seconded full-time to the unit to facilitate information sharing and investigations. This strengthened cooperation aims to reduce financial crimes in Fiji and ensure a more transparent business environment.

Warning to Tax Evaders

While acknowledging that Fiji’s overall tax compliance culture is improving, authorities have warned that they will come down hard on individuals and businesses that violate their tax obligations. It is essential for all stakeholders to adhere to the law and maintain transparency in their financial dealings.