Financial Crime World

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Fiji’s Anti-Money Laundering Efforts Face Challenges

A recent assessment by international authorities has revealed significant shortcomings in Fiji’s anti-money laundering (AML) and combating the financing of terrorism (CFT) efforts. The assessment found that public sector agencies and the private sector have differing views on the ranking of significant criminal activities, leading to limited cooperation and coordination.

Challenges in Coordination

The National Anti-Money Laundering Council (NAMLC), comprising government agencies and other stakeholders, plays a key role in formulating AML/CFT policies and strategies. However, coordination between authorities in relation to money laundering investigations and prosecutions needs significant improvement.

  • Differing views among public sector agencies and the private sector on ranking significant criminal activities
  • Limited cooperation and coordination between authorities in relation to ML investigations and prosecutions

Capacity and Resource Limitations

The Financial Intelligence Unit (FIU) provides intelligence to law enforcement agencies on predicate crimes and money laundering, but capacity and resource limitations undermine its effectiveness. The Fiji Police Force (FPF) has a specialist AML/CFT unit, but it lacks resources and coordination with other agencies, resulting in limited ability to respond to financial intelligence.

The assessment also identified weaknesses in the legal framework, including:

  • Lack of comprehensive legislation to implement targeted financial sanctions
  • Defective terrorist financing offence

Law enforcement agencies and the private sector lack awareness regarding terrorist financing, and there is no competent authority for implementing targeted financial sanctions.

Recommendations

To combat money laundering and terrorist financing effectively, it is recommended that:

  • Improve coordination between authorities
  • Enhance resource allocation and capacity building for AML/CFT efforts
  • Develop a comprehensive legislative framework for targeted financial sanctions
  • Increase awareness among law enforcement agencies and the private sector regarding terrorist financing
  • Strengthen cooperation with international partners to share best practices and expertise