Financial Crime World

Fiji’s Efforts to Combat Money Laundering and Terrorist Financing Under Scrutiny

Fiji has made some progress in identifying and assessing its money laundering (ML) and terrorist financing (TF) risks, but a recent assessment revealed significant gaps and deficiencies in its anti-money laundering and combating the financing of terrorism (AML/CFT) regime.

Key Findings

  • Identified Money Laundering Threats: Fiji’s National Risk Assessment (NRA) identified several ML threats, including drug-related crime, bribery, and corruption.
  • Lack of Convictions: Despite identifying drug crimes as a serious ML threat, there have been no ML convictions associated with these crimes.
  • Insufficient Resources: The Financial Police Force (FPF) lacks resources and a combined focus to target criminal proceeds.
  • Terrorist Financing Risks: TF risks were rated low in Fiji’s NRA, but one recent case highlights the need for law enforcement to consider TF more seriously.
  • Legislative Framework: Fiji lacks a comprehensive legislative framework to enable implementation of targeted financial sanctions.

Recommendations

To improve Fiji’s AML/CFT regime, the assessment made several recommendations:

  • Strengthen Legal Framework: Strengthen Fiji’s legal framework to combat ML and TF.
  • Enhance Operational Agency Capacity: Enhance the capacity and capability of relevant operational agencies to investigate and prosecute ML and TF offenses.
  • Improve Financial Intelligence Sharing: Improve the sharing of financial intelligence between relevant agencies.
  • Increase Awareness: Increase awareness among law enforcement agencies and the private sector regarding TF.
  • Competent Authority for Sanctions: Establish a competent authority for implementing targeted financial sanctions.

Conclusion

While Fiji has made some progress in identifying and assessing its ML and TF risks, there are still significant gaps and deficiencies in its AML/CFT regime. Addressing these weaknesses is crucial to preventing the misuse of the financial system and protecting the integrity of Fiji’s economy.