Kiribati Establishes Financial Intelligence Unit to Combat Money Laundering and Terrorism Funding

Introduction

Kiribati has taken a significant step in combating money laundering and terrorism funding by establishing a Financial Intelligence Unit (FIU) under the Anti-Money Laundering and Countering the Financing of Terrorism Act (AMLCFT) of 2009.

Functions of the FIU

The FIU is responsible for collecting, analyzing and disseminating suspicious transaction reports and other information related to money laundering and terrorism funding. Its functions include:

• Requesting and receiving information from a wide range of sources, including:
  • Reporting entities
  • Supervisory agencies
  • Law enforcement agencies
  • Other competent authorities in Kiribati and abroad
• Analyzing and disseminating suspicious transaction reports and other information related to money laundering and terrorism funding

Confidentiality Protections

The FIU is protected by laws that prevent individuals or agents from facing civil, criminal or professional liability for breaching confidentiality rules when providing information or submitting reports to the FIU.

Collaboration with International Agencies

The FIU works closely with national and international intelligence and law enforcement agencies to ensure that Kiribati has a comprehensive anti-money laundering system in place. This includes:

• Sharing information and best practices with other countries
• Participating in international efforts to combat money laundering and terrorism funding

Impact on Financial Institutions

Licensed financial institutions and other designated businesses and professionals are required by law to report suspicious transactions to the FIU. This enables the agency to identify and address suspected illegal activity effectively.

Conclusion

The establishment of the FIU is a major milestone in Kiribati’s efforts to combat money laundering and terrorism funding, and will help to protect the country’s financial system from abuse.