TF Risks Plague Public Sector Agencies and Private Sector in Fiji

A recently published report has highlighted significant weaknesses in Fiji’s anti-money laundering and counter-terrorism financing (AML/CFT) measures, posing a major threat across public sector agencies and the private sector.

Weaknesses in AML/CFT Measures

• Various law enforcement agencies had differing views on the ranking of significant criminal activities that generate illicit funds for laundering in Fiji.
• A senior official responsible for anti-terrorism policies was not aware of the risk rating for terrorism financing in Fiji’s National Risk Assessment (NRA).
• Many relevant private sector stakeholders were either unaware of the NRA or unfamiliar with its findings, despite efforts by Fijian authorities to raise awareness and consult with them throughout the development process.

Challenges in Coordination and Implementation

• The National Anti-Money Laundering Council (NAMLC) plays a key role in formulating AML/CFT policies and strategies, but coordination between authorities in relation to ML investigations and prosecutions needs significant improvement.
• There is no cooperation and coordination in relation to measures against TF and PF, particularly on the development and implementation of policies and activities to combat PF.

Gaps in Statistics and Intelligence Gathering

• Comprehensive, relevant, and reliable statistics across all AML/CFT-related agencies are not maintained, which is required by the Financial Action Task Force (FATF) standards.
• Fiji’s financial intelligence gathering and sharing is hindered by capacity, capability, and resource limitations, undermining the ability of law enforcement agencies to effectively respond to intelligence.

Deficiencies in Law Enforcement and Prosecution

• While some successful money laundering prosecutions have been undertaken, there have been no convictions associated with drug-related crimes despite the fact that drug-related crime is identified as a serious ML threat.
• ML and proceeds of crime matters are not routinely referred to FPF by FRCA or FICAC, resulting in parallel investigations not occurring.

Limitations in Confiscation Policy

• The lack of resources and a combined focus among relevant operational agencies has hindered the effective implementation of confiscation policy objectives.

Legislative Framework and Awareness

• Fiji lacks a comprehensive legislative framework to enable the implementation of targeted financial sanctions.
• There is a lack of awareness regarding TF among law enforcement agencies and the private sector, especially DNFBPs (designated non-financial businesses and professions).

Conclusion

The report concludes that TF risks pose a significant threat in Fiji, with weaknesses in legislation, policy, and implementation all contributing to the country’s vulnerability. The government has recently adopted the NRA as a policy document, but plans are underway for authorities to reorganize resources to focus on key risk areas.