Financial Crime World

Fiji’s Counter-Terrorism Financing Regulations Under Scrutiny

The Financial Action Task Force (FATF) has recently evaluated Fiji’s efforts to combat money laundering and terrorist financing, highlighting both progress and areas for improvement.

Assessment Highlights

According to the report, Fiji is:

  • Partially compliant with 14 of the FATF’s 40 recommendations
  • Largely compliant with 15
  • Non-compliant with one recommendation

The country has demonstrated a strong commitment to addressing money laundering and terrorist financing risks through its risk-based approach, national cooperation and coordination mechanisms, and targeted financial sanctions.

Areas for Improvement

However, there are areas where Fiji falls short:

  • Inadequate legal framework: Fiji’s laws regarding money laundering and terrorist financing offences do not fully align with international standards.
  • Regulatory gaps: Regulations on customer due diligence, record keeping, and correspondent banking require improvement.

Progress Made

Fiji has made significant progress in implementing anti-money laundering measures for:

  • Non-profit organizations
  • Financial institution secrecy laws
  • Wire transfers

Recommendations

To address the identified shortcomings, Fiji is encouraged to:

  • Strengthen its legal framework: Ensure that laws regarding money laundering and terrorist financing offences are aligned with international standards.
  • Improve customer due diligence practices: Enhance due diligence procedures for financial institutions and non-profit organizations.
  • Enhance cooperation with international partners: Strengthen coordination and information sharing with FATF member countries.

Conclusion

The FATF’s evaluation provides a valuable opportunity for Fiji to assess its progress in combating money laundering and terrorist financing. The country’s commitment to implementing effective anti-money laundering and counter-terrorism financing regulations will help protect its financial system from abuse and prevent the misuse of its economy for illicit purposes.