Financial Crime World

Resource Constraints Hamper FIU’s Effectiveness in Nauru

The Financial Intelligence Unit (FIU) in Nauru, a small Pacific island nation, has been struggling with resource constraints since its inception. Despite the appointment of a new FIU Supervisor in October 2011, the unit still faces significant challenges in effectively combating money laundering and terrorist financing.

Challenges Facing the FIU

  • The FIU relies heavily on international assistance and cooperation to carry out its functions, including sharing information and best practices with other countries.
  • The unit lacks sufficient resources and personnel to effectively combat money laundering and terrorist financing.
  • The FIU has been working to address these challenges, but its efforts have been hindered by a lack of resources.

Progress Made in Implementing AML/CFT Measures

  • In 2011, the government began work on a new Crimes Act, which is expected to be completed by 2013. The act will cover money laundering and corruption offenses.
  • Nauru is a member of the Asia/Pacific Group on Money Laundering (APG) and has committed to implementing the Financial Action Task Force (FATF) Recommendations by 2015.

Challenges Confronting Nauru’s AML/CFT Regime

  • According to the US State Department’s 2013 INCRS Comparative Tables, Nauru does not currently conform with regard to several areas of government legislation, including criminalizing beyond drugs, asset sharing, and cooperating with international law enforcement.
  • The European Union (EU) has raised concerns about Nauru’s AML/CFT regime, and the country is not currently on the EU White list of Equivalent Jurisdictions.

Conclusion

While Nauru has made some progress in improving its AML/CFT regime, it still faces significant challenges in combating money laundering and terrorist financing. The appointment of a new FIU Supervisor is an important step towards addressing these challenges, but more needs to be done to ensure the unit has the necessary resources and personnel to effectively carry out its functions.