Financial Crime World

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Fiji’s Fight Against Terrorist Financing and Money Laundering Faces Setbacks

Progress Made, but Challenges Remain

Fiji has made progress in strengthening its anti-money laundering (AML) and combating the financing of terrorism (CFT) regime, but it still faces significant challenges.

Partial Compliance with FATF Recommendations

According to the Asia-Pacific Group on Money Laundering (APG) 2019 report, Fiji is only partially compliant with six out of 40 recommendations from the Financial Action Task Force (FATF). The country has been warned that it must improve its financial sanctions against terrorism and proliferation, as well as increase transparency in beneficial ownership.

Effective FIU, but Significant Looting

Despite this, Fiji’s Financial Intelligence Unit (FIU) has been commended for its effectiveness and transparency. However, the FIU has also revealed that an estimated $100 million is laundered annually in Fiji, highlighting the significant scale of the problem.

EU Blacklist Update

Fiji has been added to the European Union’s list of non-cooperative tax jurisdictions. The EU blacklist was established to identify countries that fail to meet minimum standards for transparency and cooperation on taxation.

Non-Compliance with EU Criteria

Fiji was moved from the EU’s greylist to the blacklist after failing to comply with the EU’s criteria in a timely manner. According to the EU, Fiji has “harmful preferential tax regimes” that have not been abolished. The country has committed to complying with EU recommendations, which will be subject to monitoring.

APG Report Recommendations

The APG report notes that Fiji’s AML/CFT regime is gradually improving, but it still faces significant challenges. To address these challenges, the country must:

  • Continue working towards full compliance with FATF recommendations
  • Improve its financial sanctions against terrorism and proliferation
  • Increase transparency in beneficial ownership

Sources

  • APG 2019 Report
  • Council of the European Union 2019 Report
  • Fiji FIU Annual Report 2018
  • Global Financial Integrity Data by Country
  • Ministry of Justice Fiji Money Laundering and Financing of Terrorism National Risk Assessment

Disclaimer

All views in this text are the author’s and may differ from the U4 partner agencies’ policies.