Financial Crime World

Title: Financial Fraud Cases in Fiji: From Online Romances to Layering of Funds

FIU’s Strategic Analysis Report 2016 Highlights Notable Financial Crimes in Fiji

The Financial Intelligence Unit (FIU) of Fiji released its Strategic Analysis Report 2016, shedding light on various suspicious financial activities and money laundering incidents that took place in the country during the year. Below are some of the most notable cases:

University Student and Mother Involved in Money Laundering

  • A university student, Natasha Singh, and her mother, Indra Singh, were implicated in a money laundering case in 2012.
  • Natasha was befriended by a person posing as a wealthy businessman named “Steven Ham” on Facebook.
  • Ham claimed to be interested in Indra and planned to marry and move to the United States.
  • Over eight months, Ham allegedly transferred AUD 103,883.74 to Natasha’s account.
  • The funds were transferred to her mother’s account and further distributed to various beneficiaries in South Africa upon Ham’s instructions.

Actions:

  • Natasha confessed to transferring and distributing the funds but could not explain their origin.
  • Investigations revealed that the funds had not originated from the Australian company claimed by Natasha.
  • Natasha was convicted and sentenced to eight months imprisonment, suspended for two years, in November 2016.

Government Employee Colludes with Bank Officer

  • Nitesh Kumar, a former employee of the Registrar of Titles Office, was convicted for money laundering in July 2016.
  • He became friends with a bank officer, Kapil Samy, who was responsible for attending to company searches and titles searches for customers at ANZ Bank.
  • Samy, having a suspended sentence for his previous role in a money laundering case, had deposited FJ$9,888.67 (239 transactions) into Kumar’s account between April 2009 and April 2010.

Actions:

  • Kumar did not directly benefit from the offending but was sentenced to two years in prison, suspended for three years, and ordered to pay a fine of FJ$2,000.
  • There was no evidence provided to show how Kumar had obtained the money.

Sophisticated Money Laundering Scheme Involving FRCA Officials

  • Mukeshwar Narayan Singh and his accomplice, Sakiusa Vakarewa, were both convicted of several money laundering offenses between 2005 and 2009.
  • Singh created 27 fictitious taxpayers and allocated them tax identification numbers on the FItai Revenue and Customs Authority (FRCA) database.
  • He lodged false tax returns under their fake names with false certification from certain companies for PAYE deductions.
  • The FRCA refunded the deductions and issued refund cheques to Singh, who collected and encashed them.
  • Vakarewa, an auditor with the FRCA at the time, had manipulated the data under false taxpayers and enabled tax refunds to be paid to these bogus taxpayers.
  • The total sum of money involved in this scheme was FJ$117,111.

Actions:

  • Both Singh and Vakarewa were convicted of money laundering and each received a six-year imprisonment sentence, with no parole eligibility until they have completed four years and six months.

Additional Financial Fraud and Money Laundering Cases

The report also highlighted other cases, including:

  • An alleged breach of immigration permit status.
  • Trade-based money laundering schemes.
  • Internet banking fraud combined with advance fee fraud.

Maintaining Vigilance against Financial Crimes

The FIU underscored the importance of maintaining vigilance and actively identifying and reporting suspicious activity to prevent financial crime.