Financial Crime World

Fiji’s Anti-Money Laundering Regulations Under Scrutiny: Country Receives Mixed Ratings from Global Financial Watchdog

The Financial Action Task Force (FATF) has recently released a report evaluating Fiji’s progress in implementing anti-money laundering regulations, with mixed results. While the country demonstrated significant improvements in some areas, it fell short in others.

Progress and Challenges

Fiji made notable strides in assessing risk and applying a risk-based approach (R.1), as well as implementing targeted financial sanctions related to terrorism and terrorist financing (R.6). The country also received high marks for its customer due diligence measures (R.10) and record-keeping requirements (R.11).

However, Fiji faced challenges in implementing certain technical requirements. For example:

  • Financial institution secrecy laws (R.9) were found to be non-compliant.
  • Reporting of suspicious transactions (R.20) was deemed inadequate.

Additionally, Fiji’s powers of supervisors and law enforcement authorities were considered “largely compliant,” but could benefit from further strengthening.

Areas for Improvement

The report highlighted several areas where Fiji needs to improve:

  • Regulation and supervision of DNFBPs (designated non-financial businesses and professions)
  • Transparency and beneficial ownership of legal persons and arrangements

Ongoing Efforts

Fiji has been actively working to combat money laundering and terrorist financing, with a number of reforms implemented in recent years. However, the report emphasizes the need for continued progress and cooperation with international partners to ensure that Fiji remains in line with global standards.

FATF Ratings

The FATF ratings are based on a comprehensive evaluation of Fiji’s anti-money laundering regulations and practices, providing guidance for the country to strengthen its efforts to combat financial crime.

Conclusion

While Fiji has made progress in implementing anti-money laundering regulations, there is still room for improvement. The country must continue to work towards strengthening its measures to combat money laundering and terrorist financing, with a focus on addressing the areas highlighted in the report.