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Fiji Repeals Record Keeping Requirement for Companies

Suva, Fiji - In a significant development, the government of Fiji has repealed section 82(9) of the Companies Act 2015, which required companies to maintain records of members who ceased being shareholders within the last seven years.

Simplifying Regulatory Requirements for Companies

According to sources, the repeal is aimed at simplifying the regulatory requirements for companies in Fiji. The section had been a source of confusion for many businesses, particularly small and medium-sized enterprises (SMEs).

Repeal of Section 82(9)

The Companies Act 2015 requires companies to maintain a register of members, which includes details of each person who ceased being a member of the company within the last seven years and the date on which they stopped being a member. However, the repeal of section 82(9) means that companies will no longer be required to keep this information.

Progress in Implementing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) Measures

Fiji has also reported progress in implementing AML/CFT measures. The country has drafted procedures for dealing with extradition requests, including designating “comity countries”.

Fiji has made significant progress in addressing recommendations related to new technologies, including virtual assets and virtual asset service providers (VASPs). However, the country has not yet identified and assessed the ML/TF risks emerging from virtual asset activities.

Exchange Control Act and Reserve Bank of Fiji Regulations

The Reserve Bank of Fiji has prohibited any type of foreign asset ownership by residents of Fiji, as well as offshore payments and supply of offshore credit. Additionally, the Exchange Control Act prohibits certain transactions involving foreign currencies.

Next Progress Report Due on October 1, 2021

Fiji’s fifth progress report is due on October 1, 2021, and will provide an update on its efforts to strengthen its implementation of AML/CFT measures. The country remains in enhanced follow-up due to its MER effectiveness results.

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