Financial Crime World

Fiji’s AML/CFT Program Faces Challenges in Identifying Money Laundering and Financing of Terrorism Risks

Introduction

The Financial Intelligence Unit (FIU) has identified vulnerabilities in Fiji’s Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) program, highlighting concerns over money laundering and terrorist financing risks.

National Risk Assessment Highlights Challenges

According to a recent National Risk Assessment (NRA), while Fiji has made significant progress in establishing an AML/CFT framework, there are areas that require improvement. The report notes that the FIU has adequate analytical capacity to support intelligence value, but further enhancements are needed to identify money laundering and terrorist financing activities more effectively.

Border Controls a Concern

Border controls have been identified as a concern, with limited effectiveness in detecting cash movements into and out of the country, particularly at seaports. The report highlights the risk of illicit cash and monetary instruments being brought in by “transit” tourists and crew members of ships visiting Fiji’s ports.

AML/CFT Coordination

AML/CFT coordination is generally good, with a range of task forces and coordinating groups established and operating. However, it is crucial to ensure that these groups are effective and not overly burdensome on agencies.

Reserve Bank of Fiji’s Role

The Reserve Bank of Fiji, as the highest capacity supervisor, plays a critical role in mitigating risks in the financial sector. Nonetheless, the risk of transnational laundering remains high, particularly in the use of electronic funds and money transmission services.

Urgent Concerns for the AML/CFT Program

The report identifies four areas of urgent concern for the AML/CFT program:

  • Cash economy
  • Supervision of financial institutions
  • Technical resources
  • Financing of terrorism (due to global high-risk concerns)

Recommendations

Immediate attention is required to address these issues and minimize the most significant ML/FT risks identified in the NRA. The report recommends that strategies be implemented to:

  • Enhance analytical capacity
  • Improve border controls
  • Strengthen AML/CFT coordination

Conclusion

The Fiji AML/CFT program must continue to evolve and adapt to emerging threats. It is essential to review the NRA regularly and update it as necessary to ensure effective implementation of AML/CFT measures.

Contact Information

For inquiries regarding the Fiji ML/FT NRA Report, 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

Disclaimer

This article is based on a media release and may not reflect the full scope or details of the report.