Kiribati Enacts New Anti-Money Laundering Policies

The Government of Kiribati has taken a significant step in strengthening its anti-money laundering policies with the passage of the Proceeds of Crime (Amendment) Act 2005.

Background

The new legislation amends the original Proceeds of Crime Act 2003 and clarifies the definition of money laundering. It also introduces penalties for offenses related to money laundering and connected purposes.

Key Changes

• The amendments introduce a greater penalty for corporations found guilty of money laundering, with fines ranging from $30,000 to $150,000 or imprisonment for up to two years.
• The law clarifies what constitutes money laundering and what actions are considered illegal.
• Cross-references to provisions that were renumbered during drafting have been corrected.
• Financial institutions must now record transaction details above a minimum amount.

Expert Opinion

Experts believe the new law will help Kiribati meet its international obligations to combat money laundering and terrorist financing. The legislation is seen as an important step in strengthening the country’s financial system and enhancing transparency and accountability.

Effective Date

The Proceeds of Crime (Amendment) Act 2005 came into effect on July 21, 2005, following its passage by the Maneaba ni Maungatabu and assent by President Beretitenti.