Financial Crime World

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Fiji Moves up the Compliance Ladder, but Still Faces Concerns

Fiji has made significant strides in improving its anti-money laundering (AML) and counter-terrorism financing (CFT) regime, as evaluated by the Asia-Pacific Group on Money Laundering (APG). The country has moved from partially compliant to largely compliant in several areas, including:

  • Data protection
  • Inter-agency coordination

However, Fiji still faces challenges in implementing six of the 40 recommendations issued by the Financial Action Task Force (FATF), including:

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

The country’s Financial Intelligence Unit (FIU) has been praised for its effectiveness and transparency. According to a recent report by the Fiji Broadcasting Corporation, an estimated $100 million is laundered annually in the country.

Despite these efforts, Fiji was recently added to the European Union’s list of non-cooperative tax jurisdictions. The EU’s blacklist is based on three criteria:

  • Transparency
  • Fair tax competition
  • Commitment to OECD standards

Fiji has committed to comply with the EU’s recommendations and will be subject to monitoring. This inclusion may have significant consequences for its financial sector, including:

  • Increased scrutiny from international partners
  • Potential restrictions on access to financial markets

In conclusion, while Fiji has made progress in improving its AML and CFT regime, it still faces challenges in implementing key recommendations. The country’s recent addition to the EU’s blacklist serves as a reminder of the importance of continued efforts to improve transparency and cooperation in these areas.

Sources:

  • APG (2019). Third Follow-Up Report. Mutual Evaluation of Fiji.
  • Council of the European Union (2019). The EU list of non-cooperative jurisdictions for tax purposes.
  • Fiji FIU (2019). Annual Report 2018.
  • Global Financial Integrity. Data by Country.

Disclaimer: All views in this text are the author’s and may differ from the U4 partner agencies’ policies.