Fiji’s Struggle with Money Laundering and Terrorist Financing

=====================================================

Fiji has made progress in combating money laundering and terrorist financing, but still faces significant challenges according to a recent report by the Asia-Pacific Group on Money Laundering (APG).

Progress Made

The APG’s 2019 report noted that Fiji had improved its anti-money laundering and counter-terrorist financing regime. However, it was still only partially compliant with six of the Financial Action Task Force’s (FATF) recommendations.

Implementing Targeted Sanctions

Fiji has been working to address these gaps by implementing targeted financial sanctions related to terrorism and terrorist financing.

Challenges Remain

Despite progress made, Fiji still needs to improve its transparency and beneficial ownership requirements for legal persons and arrangements. The country’s inclusion on the European Union’s list of non-cooperative tax jurisdictions highlights the need for continued efforts to improve its anti-money laundering and counter-terrorist financing regime.

EU Assessment

The EU assessment found that Fiji had failed to comply with three criteria: transparency, fair tax competition, and commitment to OECD’s Base Erosion and Profit Shifting minimum standards. Fiji has committed to comply with the EU recommendations, which will be subject to monitoring by the EU.

Effective Financial Intelligence Unit

Fiji’s Financial Intelligence Unit (FIU) has been effective and transparent in its efforts to combat money laundering and terrorist financing. The FIU’s annual report for 2018 noted that it had detected around $100 million annually being laundered through the country’s financial system.

Risks Remain

The U4 Anti-Corruption Helpdesk, a research service exclusively for staff from partner agencies, notes that Fiji faces significant risks in terms of money laundering and terrorist financing. The helpdesk provides free research services to support international development actors in getting sustainable results.

Conclusion

While Fiji has made progress in combating money laundering and terrorist financing, it still faces significant challenges that need to be addressed. Continued efforts are necessary to improve its anti-money laundering and counter-terrorist financing regime.