Financial Crime World

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Money Laundering and Financing of Terrorism in Solomon Islands

Money Laundering

In the Solomon Islands, there are significant concerns about money laundering (ML) due to weaknesses in the country’s laws, regulations, and institutions. Here are some key points:

  • Lack of Anti-Money Laundering Law: There is no specific anti-money laundering law in place, but the Anti-Corruption Bill needs to be fully implemented.
  • Inadequate Financial Intelligence Unit (FIU): The FIU was established in 2009, but it lacks the necessary resources and capacity to effectively combat ML.
  • Vulnerabilities: There are weaknesses in the country’s laws, regulations, and institutions that facilitate ML.

Financing of Terrorism

Although there have been no identified cases of financing of terrorism (FT) in Solomon Islands, the country is considered vulnerable due to its geographical location, limited resources, and lack of effective counter-terrorism measures. Here are some concerns:

  • Capacity: Lack of training for law enforcement and border security officials, resource constraints, and corruption.
    • Limited ability to effectively police borders
    • High unemployment rates among youth may lead to predicate crimes being committed, including FT
  • Laws: The Government of Solomon Islands is taking measures to fulfill its international obligations to combat terrorism and extremism.
  • Cooperation and coordination: Lack of interagency cooperation and information sharing capabilities with regard to terrorism financing.
  • International cooperation: Need for bilateral and multilateral assistance programs to increase law enforcement capacity.

Recommendations

To effectively combat money laundering and financing of terrorism, the following recommendations are made:

  • Implement AML/CFT Act: Fully implement the Anti-Corruption Bill law and the Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) Act.
  • Beneficial Ownership Requirements: Expand discussions between Customs, Ministry of Tourism, shipping agencies, and cruise shipping companies on beneficial ownership and control requirements.
  • Counter-Terrorism Programs: Pursue Counter-Terrorism and Financing of Terrorism Programs to address vulnerabilities identified in Chapter 4 of this ML/FT NRA.

Conclusion

The report highlights the need for Solomon Islands to strengthen its laws, regulations, and institutions to effectively combat money laundering and financing of terrorism.