Financial Crime World

Fiji’s Anti-Money Laundering Laws Under Scrutiny: A Mixed Bag of Compliance and Improvement Needed

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Fiji has made significant progress in implementing anti-money laundering (AML) laws, but more work is needed to ensure full compliance with international standards. A recent report highlights the country’s efforts to strengthen its AML framework, but also identifies areas that require improvement.

Areas of Substantial Compliance

  • Assessing risk and applying a risk-based approach (R.1)
  • National cooperation and coordination (R.2)
  • Customer due diligence (R.10)

Fiji has shown substantial compliance in these key areas, demonstrating its commitment to implementing effective AML measures.

Areas Requiring Improvement

  • Money laundering offence laws (R.3) - need strengthening
  • Confiscation and provisional measures (R.4) - require improvement
  • Financial institution secrecy laws (R.9) - need strengthening
  • Internal controls and foreign branches and subsidiaries (R.18) - require improvement
  • Regulation and supervision of financial institutions (R.26) - need strengthening

These areas are critical to preventing money laundering and terrorist financing, and Fiji must prioritize their improvement.

Partial Compliance Areas

  • Targeted financial sanctions related to proliferation (R.7) - partial compliance
  • Transparency and beneficial ownership of legal persons (R.24) - partial compliance

While Fiji has made efforts in these areas, further improvement is needed to meet international standards.

Areas Rated as Largely Compliant

  • Record keeping (R.11)
  • Politically exposed persons (R.12)
  • Correspondent banking (R.13)
  • Wire transfers (R.16)

Fiji’s anti-money laundering laws have been rated as largely compliant in these areas, but the country must continue to strengthen its AML framework to ensure full compliance.

Conclusion

The report emphasizes the need for Fiji to continue strengthening its AML framework and improve transparency and accountability in its financial sector to prevent abuse and corruption. With continued effort, Fiji can ensure that its anti-money laundering laws are fully compliant with international standards.