Title: Fijian Financial Experts Warn Against Money Laundering in the Digital Age at National Conference

Director of Public Prosecutions Warns of Money Laundering Prevalence and Dangers

At the National Anti-Money Laundering Conference held at Holiday Inn on November 20, 2013, the Director of Public Prosecutions in Fiji, Mr. Christopher Pryde, issued a dire warning against the prevalence and dangers of money laundering. He underscored the importance of increased vigilance and early detection measures to combat this criminal activity.

Money Laundering - A Necessary Evil for Criminals

Mr. Pryde stated that money is now the primary driving force behind most criminal activities, emphasizing that “Money-laundering is the method by which criminals, including terrorists and terrorist organizations, disguise their ill-gotten gains to avoid law enforcement agencies and prevent leaving incriminating evidence.”

Consequences of Money Laundering

Detailing the severe consequences of money laundering, he highlighted how it negatively impacts the financial sector and broader economy, while fueling corruption, organized crime, and even terrorism. With an estimated $1.6 trillion being laundered annually, ranging between 2% and 5% of the world’s GDP, international efforts to combat this crime have intensified.

Fiji’s Anti-Money Laundering Framework

Fiji has one of the most sophisticated legal frameworks against money laundering and proceeds of crime. However, Mr. Pryde emphasized that while “The laws are only part of the solution. Detection is everything.”

Suspicious Transactions and Consequential Cases

Since 2006, there have been 4,054 suspicious transactions reported by financial institutions in Fiji. Two significant cases emerged from these:

1. Robin Shyam, a former employee of the Fijian Revenue and Customs Authority, ran an elaborate money laundering scam through fraudulent tax returns, laundering $350,000 through 19 accounts belonging to family and friends, which went undetected for two years. He was eventually sentenced to 12 years in prison in 2013.
2. Sanjay Sharma defrauded his employer of over $619,000 through fraudulent cheques. In this case, the bank raised the alarm and restrained the funds before any further damage could be done.

Banks and the Internet as Money Laundering Tools

As criminals increasingly rely on banks and their internet banking platforms to obtain and launder funds, bankers play a critical role in anti-money laundering regimes. However, they face new challenges, such as:

• Hacking customers’ internet banking platforms
• Remitting funds through third-party customers to bypass Reserve Bank permissions
• Obtaining assistance from bank employees in complex money laundering schemes

Early Detection as the Key to Prevention

Despite increasingly sophisticated money laundering techniques, early detection remains the most effective tool to prevent criminals from benefiting from their illegal activities. The need for collaboration among various stakeholders, such as the government, financial institutions, and the public, to safeguard Fiji’s financial sector from the insidious reach of illicit funds was emphasized.