Financial Crime World

Fiji’s Anti-Money Laundering and Counter-Terrorist Financing Efforts Face Significant Challenges

A recent report has revealed that Fiji’s efforts to combat money laundering and terrorist financing are hindered by a lack of coordination between public sector agencies and the private sector.

Challenges in Combating Money Laundering and Terrorist Financing

  • Law enforcement agencies have differing views on the ranking of significant criminal activities that generate illicit funds for laundering.
  • 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.

Coordination and Statistics Gathering

  • The National Anti-Money Laundering Council (NAMLC) plays a key role in formulating AML/CTF policies and strategies, but coordination between authorities needs significant improvement.
  • Comprehensive statistics on matters relevant to the effectiveness and efficiency of Fiji’s AML/CTF system are not maintained as required by the Financial Action Task Force (FATF) standards.

Terrorist Financing

  • The TF offence is significantly defective, as it does not cover the provision of property to individual terrorists or terrorist organizations in the absence of a link to terrorist acts.
  • Fiji lacks a comprehensive legislative framework to enable implementation of targeted financial sanctions and has not identified a competent authority for implementing relevant targeted financial sanctions.

Recommendations

  • Increase coordination between authorities to improve the effectiveness of AML/CTF measures.
  • Improve statistics gathering to better understand the scope and scale of money laundering and terrorist financing in Fiji.
  • Strengthen laws and regulations to combat money laundering and terrorist financing, including the TF offence and targeted financial sanctions.
  • Provide training and capacity building for law enforcement agencies and the private sector to improve awareness and understanding of AML/CTF measures.

Conclusion

Fiji’s efforts to combat money laundering and terrorist financing are hindered by a lack of coordination between public sector agencies and the private sector, as well as a need for improved statistics gathering and strengthening of laws and regulations. Addressing these challenges is crucial to preventing the misuse of Fiji’s financial system and protecting its citizens from the risks posed by money laundering and terrorist financing.