Financial Crime World

Kiribati Financial Crime Investigation Agencies Under Scrutiny

The financial crime investigation agencies in Kiribati are facing numerous challenges in combating financial crimes, including money laundering and terrorist financing. Despite efforts to engage on an international level, resources to fight these crimes are scarce.

Challenges Faced by Financial Crime Investigation Agencies

  • Criminal Networks: Kiribati is home to a number of criminal networks involved in human trafficking and illegal fishing.
  • Porous Borders: The country’s borders are porous, allowing smugglers to easily transport goods into the region.
  • Limited Legal Support and Training: Magistrates lack qualified legal support, and law enforcement officials receive limited training, leading to a backlog of cases.
  • Inadequate Prison System: The prison system is inadequate, with poor detention conditions and lack of security, enabling prisoners to move freely in and out of prisons.

Efforts to Strengthen Anti-Money Laundering System

  • Financial Intelligence Unit: Kiribati has a financial intelligence unit in place.
  • Strengthened Reporting Mechanisms: The country is reportedly strengthening its reporting mechanisms for suspicious transactions.

Economic Challenges

  • Economic Regulations: Kiribati’s economic regulations make it difficult to do business in the country.
  • Relatively Easy to Regulate: However, the small economy is relatively easy to regulate due to a lack of skilled workers, weak infrastructure, and vast distances from neighboring countries’ markets.
  • Dependence on Foreign Aid: The country is highly dependent on foreign aid, making it vulnerable to foreign actors/donors and state capture.

Civil Society Sector

  • NGOs Cooperation: The civil society sector in Kiribati is well-developed, with NGOs cooperating with the government on matters such as countering overfishing and protecting endangered marine species.
  • Lack of Victim or Witness Support Structures: However, there are no victim or witness support structures in place, making it difficult to provide protection for those affected by financial crimes.

Conclusion

While Kiribati’s financial crime investigation agencies face significant challenges, the country is taking steps to strengthen its anti-money-laundering system and improve its reporting mechanisms for suspicious transactions.