Financial Crime World

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Fiji’s Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) Program

General Observations

  • Fiji has a well-established AML/CFT program with necessary legislation in place and operational supervisors.
  • However, there are concerns about the limited ability to prevent illicit cash and monetary instruments from being brought into and taken out of the country, particularly by “transit” tourists and crews of other vessels.

High-Risk Areas

  • The Fijian banking sector bears a significant portion of the Money Laundering (ML)/Financial Terrorism (FT) risks.
  • All financial services in Fiji are facilitated by modern communications and a relatively open economy, which creates a higher likelihood of being used to facilitate ML/FT through illicit funds flows.
  • Vulnerabilities exist within money transmission services and money changer businesses that create channels for placement and movement of cash proceeds.

Recommendations

  • Implement identified strategies to ensure that ML/FT does not escalate in the higher-risk areas.
  • Identify new ML/FT risks at an early stage and implement mitigating strategies to minimize the level of risk.
  • Four areas of urgent concern are:
    • The cash economy: reducing reliance on cash transactions to prevent money laundering
    • Supervision of financial institutions: strengthening oversight to detect suspicious activities
    • Technical resources: enhancing capabilities to analyze and process financial data
    • Financing of Terrorism: addressing the high global risk associated with terrorist financing

National Risk Assessment

  • The National Risk Assessment (NRA) was conducted between May 2014 and May 2015.
  • The report highlights the high level of ML/FT risks in Fiji, particularly in the areas mentioned above.
  • A review of the NRA is recommended every 12 months, with a further NRA to be conducted within 2-5 years.

Secretariat Contact Information

For enquiries regarding the Fiji ML/FT NRA Report, contact:

  • The Secretariat of the National Anti-Money Laundering Council
  • Fiji Financial Intelligence Unit (FIU)