Financial Crime World

Fiji’s AML/CFT Program Faces High Risks, Experts Warn

National Risk Assessment Reveals Vulnerabilities in Financial System

A recently conducted National Risk Assessment (NRA) has identified significant vulnerabilities in Fiji’s financial system, making it highly susceptible to money laundering and financing of terrorism (ML/FT). The assessment revealed that commercial banks are particularly at risk, followed by licensed foreign exchange dealers and safe custody facilities.

Key Findings

  • The Fijian banking sector is a major hub for ML/FT risks, particularly regarding illicit cash and electronic funds.
  • Border controls have limited effectiveness in detecting the movement of cash into and out of Fiji, particularly at seaports.
  • Money transmission services and money changer businesses create channels for placement and movement of cash proceeds.
  • Real estate deals were found to be a high-risk area for ML/FT activity.

Areas of Concern

The NRA identified several areas of concern, including:

  • The cash economy
  • Supervision of financial institutions
  • Technical resources
  • Financing of terrorism

Recommendations

To address these concerns, the NRA recommended immediate attention to four key areas:

  • Strengthening the supervision of financial institutions
  • Improving technical resources and capacity building
  • Enhancing border controls and monitoring of cash transactions
  • Developing a comprehensive strategy for financing of terrorism

Implementation Strategies

Implementing strategies in each of these areas will help minimize the most significant ML/FT risks. The National AML Council has committed to reviewing and updating the NRA every 12 months and conducting a further assessment within two to five years.

Expert Warning

Experts warn that it is crucial for Fiji to ensure the effectiveness of its AML/CFT program, given the high level of ML/FT risks identified in the NRA. The country’s financial system must continue to be vigilant in identifying and addressing these risks to prevent the misuse of its financial institutions for illegal activities.

Contact Information

For more information on Fiji’s Anti-Money Laundering Council or the National Financial Intelligence Unit, please contact:

  • Secretariat of the National Anti-Money Laundering Council
  • Fiji Financial Intelligence Unit, Tower 5, Reserve Bank of Fiji Building, Pratt Street, Suva, Fiji.
  • Phone: +679 322 3333
  • Web site: www.fijifiu.gov.fj