Financial Crime World

Here is the converted article in Markdown format:

Fiji’s Anti-Money Laundering and Terrorist Financing Regime Under Scrutiny

============================================================

A recent report by the Asia-Pacific Group on Money Laundering (APG) has highlighted Fiji’s ongoing efforts to improve its anti-money laundering and terrorist financing regime, despite still being partially compliant with six out of 40 Financial Action Task Force (FATF) recommendations.

Progress Made, Challenges Remain

According to the APG’s Third Follow-Up Report, Fiji has made progress in areas such as:

  • Data protection
  • Inter-agency coordination
  • Its Financial Intelligence Unit (FIU) deemed effective and transparent

However, the country still lags behind on implementing:

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

FIU Report Highlights Annual Laundering Amount

Fiji’s FIU has reported that approximately $100 million is laundered annually in the country. This highlights the need for further action to combat money laundering and terrorist financing.

EU Adds Fiji to Tax Blacklist

==============================

In a separate development, Fiji has been added to the European Union’s list of non-cooperative tax jurisdictions. The EU’s blacklist was established to identify countries that fail to meet international standards on transparency, fair tax competition, and commitment to the OECD’s Base Erosion and Profit Shifting minimum standards.

Fiji was moved from the greylist to the blacklist after failing to comply with EU criteria in a timely manner. The country has committed to address the concerns raised by the EU and will be subject to monitoring.

Importance of Cooperation

The addition of Fiji to the tax blacklist is a reminder of the importance of cooperation between countries to combat tax evasion and money laundering.

Conclusion

==========

Fiji’s anti-money laundering and terrorist financing regime continues to face challenges, but the country’s efforts to improve its compliance with FATF recommendations are welcome. The EU’s decision to add Fiji to its tax blacklist serves as a warning that countries must prioritize transparency and cooperation to prevent harmful tax practices.

It is essential for Fiji to continue working towards full compliance with international standards to maintain its reputation as a responsible and cooperative member of the global financial community.

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.
  • RNZ. (2019). Fiji, Vanuatu, Marshall Islands added to EU tax blacklist.

Disclaimer

==========

This article is a summary of the original report and does not necessarily reflect the views of the U4 Anti-Corruption Helpdesk or its partner agencies.