Financial Crime World

Sector Agencies and Private Sector Lack Coordination in Anti-Money Laundering Efforts, Report Finds

A recent report has highlighted a significant issue in Fiji: the lack of coordination between sector agencies and the private sector in combating money laundering and terrorist financing.

Key Findings

  • Key ministries and government agencies have differing views on the ranking of significant criminal activities that generate illicit funds for laundering.
  • A senior official responsible for anti-terrorism policies was not aware of the risk rating for terrorism financing in Fiji’s National Risk Assessment (NRA).
  • Many private sector stakeholders are either not aware of the NRA or its findings, despite efforts by Fijian authorities to familiarize them with the process and results.

Challenges

  • The National Anti-Money Laundering Council (NAMLC) plays a key role in promoting collaboration between relevant agencies, but coordination between authorities in relation to ML investigations and prosecutions needs significant improvement.
  • The government has not developed detailed AML/CFT policies to address key ML/TF risks identified in the NRA. Plans are underway for the authorities to reorganize resources to focus on key risk areas.
  • Comprehensive, relevant, and reliable statistics across all AML/CFT-related agencies are lacking, and have not been maintained as required by the Financial Action Task Force (FATF) standards.

Limitations

  • The Fiji Police Force (FPF), Fiji Revenue and Customs Agency (FRCA), and Anti-money Laundering and Counter-terrorist Financing Measures in Fiji 2016 @ APG 2016 9 Independent Commission on Corruption (FICAC) have resource limitations that undermine their ability to effectively respond to financial intelligence.
  • There is a need for improvement in intercepting private communications, as well as a comprehensive legislative framework to enable implementation of targeted financial sanctions.

Recommendations

  • The government should take immediate action to address these deficiencies and improve coordination between sector agencies and the private sector.
  • Law enforcement agencies and the private sector should increase awareness regarding terrorist financing.
  • A comprehensive legislative framework should be developed to enable implementation of targeted financial sanctions.

The findings of this report have sparked concerns about the effectiveness of Fiji’s anti-money laundering and counter-terrorist financing measures. It is essential that the government takes immediate action to address these deficiencies and improve coordination between sector agencies and the private sector.