Financial Crime World

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Fiji’s Fight Against Money Laundering and Terrorist Financing: Progress Made, but Challenges Remain

Fiji has made significant progress in its efforts to combat money laundering and terrorist financing, according to a recent report by the Asia Pacific Group on Money Laundering (APG). While the country has improved its anti-money laundering and counter-terrorist financing regime, it still faces challenges in implementing key recommendations.

Progress and Challenges

The APG’s Third Follow-Up Report noted that Fiji has largely complied with recommendations related to data protection and inter-agency coordination. However, the country remains partially compliant on six FATF (Financial Action Task Force) recommendations, including targeted financial sanctions related to terrorism and terrorist financing.

  • These gaps have not gone unnoticed by international authorities.
  • In March, the European Union added Fiji to its list of non-cooperative tax jurisdictions, citing harmful preferential tax regimes that have not been abolished.
  • The country has committed to comply with EU recommendations, which will be subject to monitoring.

Importance of Addressing Gaps

The inclusion on the EU’s blacklist highlights the importance of addressing these gaps in Fiji’s anti-money laundering and counter-terrorist financing regime. According to a report by the Fiji Independent Commission Against Corruption (FICAC), $100 million is laundered annually through the country’s financial system.

Effective Financial Intelligence Unit

Despite these challenges, Fiji’s Financial Intelligence Unit (FIU) has been effective and transparent in its operations. The FIU’s Annual Report 2018 noted that it had received over 1,500 reports of suspicious transactions, resulting in several successful investigations and prosecutions.

Gradual but Significant Progress

The U4 Anti-Corruption Helpdesk, a research service exclusively for staff from international development agencies, notes that Fiji’s progress in combating money laundering and terrorist financing is gradual but significant. The country has shown commitment to improving its anti-money laundering regime, including strengthening its financial intelligence capabilities and increasing cooperation with other countries.

Way Forward

However, addressing the remaining gaps will require sustained efforts by the government and regulatory bodies. It is essential that Fiji continues to prioritize the implementation of key recommendations and strengthens its international partnerships to combat money laundering and terrorist financing effectively.

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
  • FICAC (2019) Report on Money Laundering in Fiji

Disclaimer: All views expressed in this article are those of the author and may differ from the U4 partner agencies’ policies.