Facilitation of Domestic Crime in Solomon Islands: A Confidential Report

Introduction

This confidential report highlights the facilitation of domestic crime in Solomon Islands by international sources, including foreign money. The report examines several crimes that are facilitated by foreign funds and provides recommendations for improving targeting and collection of financial intelligence.

Crimes Facilitated by Foreign Money

The following crimes have been identified as being facilitated by foreign money:

Corruption

Foreign funds are used to influence the granting of work permits, visas, decisions on revenue or duty collection, and resource extraction licenses.

Logging and Fishing

Foreign logging entities finance some political interests in Solomon Islands.

Sexual Exploitation

Employees of logging and fishing industries frequent sex workers, with this activity associated with the gaming industry, logging camps, and visiting ships.

Trade Fraud and Forgery

Foreign funds are used to facilitate trade fraud and forgery.

Recommendations for Improving Financial Intelligence

To improve targeting and collection of financial intelligence, the following measures are recommended:

Improved Bank Monitoring

Financial institutions should pay particular attention to accounts associated with members of Parliament and senior government officials, as well as logging and fishing companies.

Establishing Financial Monitoring and Reporting Systems

Casinos, car dealers, credit unions, and money transfer services should establish financial monitoring and reporting systems.

Improved Sharing of Financial Intelligence

The Solomon Islands Financial Intelligence Unit should establish information exchange arrangements with the FIUs of Australia, other Melanesian countries, China, Malaysia, Singapore, and Indonesia.

Promoting Subregional Cooperation Against Environmental Crime

Solomon Islands, PNG, and Indonesia have serious problems with illegal logging conducted by a similar set of companies.