Kiribati Faces Challenges in Implementing Anti-Money Laundering Policies

Introduction

Kiribati is a small island nation that faces numerous challenges in implementing effective anti-money laundering (AML) policies. Despite efforts to strengthen its AML system, the country still struggles with limited resources, weak infrastructure, and high dependence on foreign aid.

Challenges in Implementing AML Policies

• Kiribati’s economy is heavily reliant on foreign aid, making it vulnerable to foreign actors and state capture.
• The country lacks skilled workers, which hinders its ability to combat money laundering and terrorist financing effectively.
• Weak infrastructure and vast distances from neighboring countries’ markets create significant challenges for the country’s economic development.

Economic Regulations

• Kiribati’s economic regulations are heavy, making it difficult to do business in the country.
• The high dependence on foreign aid makes it challenging for the country to build more resilience and self-sufficiency.

Infrastructure and Resources

• The country lacks a reliable high-speed internet connection, which limits access to diverse media content and information.
• Kiribati’s civil society sector is well-developed, with NGOs cooperating with the government on issues such as overfishing and protecting endangered marine species.
• However, the country lacks victim or witness support structures, making it difficult to protect witnesses.

International Cooperation

• Kiribati has signed agreements with international organizations such as the UN Convention against Transnational Organized Crime, the Arms Trade Treaty, and the United Nations Convention against Corruption.
• The country collaborates with regional security bodies such as the Pacific Islands Chiefs of Police and the Pacific Transnational Crime Network.

Judicial System and Prison Conditions

• Kiribati’s judicial system has deficiencies, including a lack of qualified legal support for magistrates and limited training of magistrates, leading to a backlog of cases.
• The prison system is inadequate, with poor detention conditions and lack of security.

Conclusion

Despite efforts to implement AML policies, Kiribati still faces significant challenges due to its limited resources, weak infrastructure, and high dependence on foreign aid. To build more resilience, the country needs to continue strengthening its AML system and addressing these underlying challenges.