Janus Faces Financial Intelligence Deficiencies: Experts Urge Closer Pro-Active Working with SIFIU

Solomon Islands’ Financial Regime Lacks Operational Independence, Autonomy, and Strategic Approach to Combating Money Laundering and Terrorist Financing

Honiara, Solomon Islands - A recent assessment of the country’s financial intelligence regime has identified several deficiencies that hinder the effective combating of money laundering (ML) and terrorist financing (TF). The report highlights the need for closer pro-active working between Janus, the country’s financial intelligence unit, and other law enforcement agencies to address these shortcomings.

The assessment conducted by APG 2019 found that while Solomon Islands has made some progress in combating ML and TF, there are significant gaps in its financial intelligence regime. The key deficiencies include:

Lack of Operational Independence and Autonomy

• Janus’ independence and autonomy remain a technical deficiency, despite the team identifying no evidence of interference from other agencies.

Inconsistent Convictions

• Despite one notable conviction for ML since 2013, Solomon Islands’ legal framework has not consistently pursued ML offenses.

Limited Confiscation Activity

• The country does not have a policy or strategy to pursue proceeds of crime and confiscate criminal assets, resulting in low levels of confiscation activity.

Weak Regulation of Non-Profit Organizations (NPOs)

• The NPO sector is considered high-risk for ML/TF, but lacks strategic and operational monitoring, with no legal framework or policies in place.

The report also highlights the need for a more proactive approach to combating TF, as Solomon Islands currently lacks a strategy or policy to support effective investigations and prosecutions of TF activities.

Recommendations

To address these deficiencies, experts recommend closer collaboration between Janus and other law enforcement agencies, including:

Enhanced Risk Assessments

• Conducting regular risk assessments to identify areas of high-risk activity and target resources accordingly.

Improved Information Sharing

• Facilitating the sharing of financial intelligence and suspicious transaction reports (STRs) among agencies to enhance investigations and prosecutions.

Strengthened Regulation and Supervision

• Implementing robust regulatory frameworks and supervisory mechanisms to ensure compliance with AML/CFT standards.

By addressing these deficiencies, Solomon Islands can strengthen its financial intelligence regime and better combat ML and TF threats.