Financial Crime World

Fiji’s Fight Against Money Laundering and Terrorist Financing

Fiji has made significant progress in combating money laundering and terrorist financing, but still lags behind on several key recommendations from the Financial Action Task Force (FATF).

Progress Made

According to a recent report by the Asia-Pacific Group on Money Laundering (APG), Fiji is considered “largely compliant” with FATF’s anti-money laundering and counter-terrorist financing (AML/CFT) standards. The country has made improvements in:

  • Data protection
  • Inter-agency coordination
  • Effectiveness of its Financial Intelligence Unit (FIU)

Outstanding Recommendations

However, Fiji still has six outstanding recommendations to address, including:

  • Targeted financial sanctions related to terrorism and terrorist financing
  • Transparency and beneficial ownership of legal persons and arrangements
  • Extradition

Concerns Raised

The FIU has been praised for its transparency and effectiveness. However, Fiji’s failure to comply with FATF’s recommendations on non-profit organizations and lack of progress in implementing measures to prevent the misuse of companies and other legal entities have raised concerns.

EU Adds Fiji to Tax Blacklist

In a separate development, Fiji has been added to the European Union’s list of non-cooperative tax jurisdictions. The country was moved from the EU’s greylist to the blacklist after failing to comply with the EU’s criteria for transparency, fair tax competition, and commitment to OECD standards on base erosion and profit shifting.

Commitment to Compliance

Fiji has committed to comply with EU recommendations, which will be subject to monitoring by the EU. The addition of Fiji to the blacklist is a setback for the country’s efforts to improve its tax regime and increase transparency in its financial sector.

Conclusion

While Fiji has made progress in combating money laundering and terrorist financing, it still faces significant challenges in implementing FATF’s recommendations. The country’s inclusion on the EU’s tax blacklist is a reminder of the need for continued improvement in its tax regime and increased transparency in its financial sector.