Financial Crime World

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Fiji’s Anti-Money Laundering and Terrorist Financing Efforts Face Criticism

Suva, Fiji - Despite efforts to combat money laundering and terrorist financing, Fiji still faces criticism over several areas of non-compliance with international standards.

Compliance Status

According to the Asia-Pacific Group on Money Laundering (APG) 2019 report, Fiji is largely compliant in areas such as data protection and inter-agency coordination. However, it remains partially compliant with six out of 40 recommendations from the Financial Action Task Force (FATF).

Effective Financial Intelligence Unit

The APG report notes that Fiji’s Financial Intelligence Unit (FIU) appears to be effective and transparent. However, the country still needs to improve its:

  • Targeted financial sanctions related to terrorism and terrorist financing
  • Transparency and beneficial ownership requirements

EU’s List of Non-Cooperative Tax Jurisdictions

Fiji has recently been added to the European Union’s list of non-cooperative tax jurisdictions due to its “harmful preferential tax regimes” that have not yet been abolished. Fiji has committed to comply with EU recommendations, which will be subject to monitoring by the EU.

Estimated Annual Laundering

The FIU estimates that $100 million is laundered annually in Fiji, highlighting the need for continued efforts to combat money laundering and terrorist financing.

Progress and Commitment

Despite these challenges, Fiji has not featured on FATF’s blacklists in the past. The country’s gradual improvement in its anti-money laundering and terrorist financing regime suggests that it is committed to addressing these issues.

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
  • Global Financial Integrity: Data by Country

Disclaimer:

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

About U4:

The U4 anti-corruption helpdesk is a free research service exclusively for staff from U4 partner agencies. This service is a collaboration between U4 and Transparency International in Berlin, Germany.