Financial Crime World

Fiji Embarks on Risk-Based Approach to Compliance

Fiji has taken a significant step forward in strengthening its financial sector by adopting a risk-based approach to compliance with international anti-money laundering (AML) and combating the financing of terrorism (CFT) standards.

Progress in Implementing AML/CFT Standards

According to the Mutual Evaluation Report 2016, Fiji has made significant progress in implementing the technical requirements of the Financial Action Task Force (FATF) Recommendations. The report highlights the country’s commitment to adopting a risk-based approach to compliance, which involves identifying and assessing risks associated with money laundering and terrorist financing.

Risk-Based Approach to Compliance

Under this approach, financial institutions in Fiji are required to implement measures that address specific risks, rather than following a one-size-fits-all approach. This includes:

  • Conducting customer due diligence
  • Monitoring transactions
  • Reporting suspicious activities

Enhanced National Cooperation and Coordination

The report also notes Fiji’s efforts to enhance national cooperation and coordination among law enforcement agencies, financial intelligence units, and regulatory bodies. The country has established mechanisms for sharing information and collaborating on investigations, which is critical in preventing and detecting AML/CFT offenses.

Fiji has also strengthened its legal framework by introducing laws that criminalize money laundering and terrorist financing. The country’s confiscation and provisional measures have been enhanced to enable the freezing of assets and seizing of proceeds from illegal activities.

Areas for Improvement

The report highlights several areas where Fiji still needs to improve, including:

  • Regulation and supervision of financial institutions
  • DNFBPs (designated non-financial businesses and professions)
  • Transparency and beneficial ownership of legal persons and arrangements

Conclusion

Fiji’s commitment to a risk-based approach to compliance demonstrates its dedication to preventing and combating AML/CFT offenses, and ensuring the integrity of its financial sector. By implementing this approach, Fiji is taking a proactive step towards maintaining a stable and secure financial system.