Financial Crime World

Fiji’s Anti-Money Laundering and Counter-Terrorism Financing Efforts Face Criticism

A recent assessment by a team of experts has revealed significant shortcomings in Fiji’s efforts to combat money laundering (ML) and terrorist financing (TF). The report highlights several key issues that need to be addressed.

Lack of Coordination and Limited Private Sector Involvement

  • Several law enforcement agencies had differing views on the ranking of significant criminal activities that generate illicit funds for laundering.
  • A key ministry senior official responsible for anti-terrorism policies was not aware of the risk rating for TF in Fiji’s National Risk Assessment (NRA).
  • The private sector, which is crucial in combating ML and TF, appears to be largely unaware of the NRA process and findings.

Inadequate Resources and Coordination

  • The National Anti-Money Laundering Council (NAMLC) plays a key role in formulating AML/CFT policies and strategies, but coordination between authorities in relation to ML investigations and prosecutions needs significant improvement.
  • There is no cooperation and coordination in relation to measures against TF and predicate offenses.

Lack of Comprehensive Statistics

  • The report highlights the lack of comprehensive, relevant, and reliable statistics across all AML/CFT-related agencies, which is a requirement under the Financial Action Task Force (FATF) standards.

Positive Notes

  • The Fiji Independent Commission Against Corruption (FICAC) and the Fiji Revenue and Customs Authority (FRCA) have been effective in responding to financial intelligence.
  • Capacity, capability, and resource limitations undermine the ability of law enforcement agencies to effectively respond to ML-related intelligence.

Areas for Improvement

  • A comprehensive legislative framework is needed to enable implementation of targeted financial sanctions.
  • There is a lack of awareness regarding TF among law enforcement agencies and the private sector.

Conclusion

The assessment team concluded that Fiji’s AML/CFT system requires significant improvements to address ML and TF risks. The government has been advised to develop detailed policies to address key ML/TF risks, improve coordination between authorities, and increase resource allocation to combat these threats.