Financial Crime World

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Fiji Struggles to Comply with Anti-Money Laundering and Terrorist Financing Requirements

A recent report by the Asia-Pacific Group on Money Laundering (APG) has highlighted Fiji’s ongoing challenges in implementing effective anti-money laundering (AML) and combating the financing of terrorism (CFT) measures.

Partial Compliance with FATF Recommendations

According to the APG’s Third Follow-Up Report, Fiji is still only partially compliant with six out of 40 Financial Action Task Force (FATF) recommendations. The country needs to improve its implementation of targeted financial sanctions related to terrorism and terrorist financing, as well as transparency and beneficial ownership requirements for legal persons and arrangements.

Key Areas of Concern

  • Targeted financial sanctions related to terrorism and terrorist financing
  • Transparency and beneficial ownership requirements for legal persons and arrangements
  • Data protection and inter-agency coordination (although Fiji has made progress in these areas)

Implications of Non-Compliance

Fiji’s failure to comply with FATF recommendations has also led to its addition to the European Union’s list of non-cooperative tax jurisdictions. The EU blacklist is based on an assessment of third countries’ performance against three criteria:

  • Transparency
  • Fair tax competition
  • Commitment to OECD minimum standards

Consequences for Fiji

  • Impact on ability to attract foreign investment and engage in international trade
  • Deadline set by the EU to comply with recommendations, subject to monitoring

Ongoing Efforts to Improve AML-CFT Regime

Despite these challenges, Fiji remains committed to improving its AML-CFT regime and complying with international standards. The country’s Financial Intelligence Unit (FIU) has reported that an estimated $100 million is laundered annually in Fiji, highlighting the need for urgent action to address this issue.

Sources

  • APG (2019). Third Follow-Up Report. Mutual Evaluation of Fiji.
  • Council of the European Union (2019). The EU list of non-cooperative jurisdictions for tax purposes.
  • Fiji FIU (2019). Annual Report 2018.
  • RNZ (2019). Fiji, Vanuatu, Marshall Islands added to EU tax blacklist.

Disclaimer

The views expressed in this article are those of the author and do not necessarily reflect the policies or positions of U4 partner agencies.