Financial Crime World

Fiji’s Anti-Money Laundering and Counter-Terrorism Financing Efforts Fall Short

A recent assessment has revealed significant shortcomings in Fiji’s anti-money laundering (AML) and counter-terrorism financing (CFT) efforts, despite its commitment to combating these threats.

Coordination Challenges

The National Anti-Money Launderling Council (NAMLC), responsible for formulating AML/CFT policies, plays a key role in the process. However, coordination between authorities on money laundering investigations and prosecutions needs significant improvement.

  • Private sector stakeholders were often unaware of the National Risk Assessment (NRA) or its findings.
  • Coordination between government agencies is lacking, hindering effective responses to AML/CFT threats.

Limited Resources

The report highlights a lack of resources among relevant agencies, including:

  • The Financial Intelligence Unit (FIU), which lacks capacity and resources to effectively respond to intelligence.
  • The Fiji Police Force (FPF), the Fiji Revenue and Customs Agency (FRCA), and the Independent Commission on Corruption (FICAC), all face similar resource challenges.

Inadequate Policies

The report also notes:

  • A lack of referrals from FRCA and FICAC to the FPF, resulting in parallel investigations not occurring.
  • No comprehensive legislative framework to implement targeted financial sanctions.
  • Limited awareness among law enforcement agencies and the private sector regarding terrorist financing.

Successful Prosecutions Marred by Lack of Convictions

Despite some successful money laundering prosecutions:

  • Convictions associated with drug-related crimes are lacking.
  • The FPF’s specialist AML/CFT unit has been able to investigate complex money laundering matters, but lacks resources and support from other agencies.

Conclusion

The assessment team concluded that Fiji needs to:

  1. Improve coordination between authorities
  2. Enhance resource allocation
  3. Strengthen its legislative framework
  4. Effectively combat money laundering and terrorist financing

Fiji’s efforts to combat AML/CFT threats are hindered by a lack of coordination, limited resources, and inadequate policies. Addressing these shortcomings is crucial for the country’s financial security and stability.