Financial Crime World

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Fiji Moves Up on Anti-Money Laundering and Terrorist Financing Front, but Still Faces Gaps

The Financial Action Task Force (FATF) has praised Fiji’s efforts to improve its anti-money laundering (AML) and combating the financing of terrorism (CFT) regime. However, the country still faces several gaps in its national AML-CFT framework.

Progress Made

According to a recent report by the Asia-Pacific Group on Money Laundering (APG), Fiji was moved from partially compliant to largely compliant in areas such as data protection and inter-agency coordination. The APG also noted that Fiji’s Financial Intelligence Unit (FIU) seems to be effective and transparent.

Challenges Remain

However, Fiji still faces several challenges in implementing the FATF recommendations, particularly in regards to:

  • Targeted financial sanctions related to terrorism and terrorist financing
  • Non-profit organizations
  • Transparency and beneficial ownership of legal persons and arrangements
  • Extradition

The country’s FIU has been working to address these gaps, but more needs to be done.

EU Blacklists Fiji for Tax Cooperation

Fiji has been added to the European Union’s list of non-cooperative tax jurisdictions. The country was moved from the EU’s greylist to the blacklist after failing to comply with the EU’s criteria on transparency, fair tax competition, and commitment to the OECD’s Base Erosion and Profit Shifting minimum standards.

Fiji’s AML-CFT Challenges

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Money laundering and terrorist financing are significant risks in Fiji, according to a report by the U4 Anti-Corruption Helpdesk. The country’s FIU estimates that $100 million is laundered annually through its financial system.

Fiji has been working to improve its AML-CFT regime, but more needs to be done to address the gaps and risks identified by the APG and other international organizations. The country’s financial sector remains vulnerable to money laundering and terrorist financing, and more effective measures are needed to prevent these crimes.

Conclusion

While Fiji has made progress in improving its anti-money laundering and combating the financing of terrorism regime, there is still much work to be done. The country needs to address the gaps identified by the APG and other international organizations, particularly in regards to targeted financial sanctions, non-profit organizations, transparency and beneficial ownership of legal persons and arrangements, and extradition.

Fiji’s inclusion on the EU’s tax blacklist highlights the need for improved tax cooperation and transparency. The country’s financial sector remains vulnerable to money laundering and terrorist financing, and more effective measures are needed to prevent these crimes.

Source

  • Asia-Pacific Group on Money Laundering (APG). (2023). Fiji: AML/CFT Assessment Report.
  • European Union. (2023). EU’s list of non-cooperative tax jurisdictions.
  • U4 Anti-Corruption Helpdesk. (2023). Money Laundering and Terrorist Financing risks in Fiji.

Disclaimer

All views in this article are the author(s) and may differ from the U4 partner agencies’ policies.