Samoan Banks Face Low Risk of Money Laundering Fraud Schemes: Central Bank of Samoa

The Central Bank of Samoa (CBS) has conducted an assessment on four major commercial banks in Samoa, including ANZ Bank Samoa Limited, BSP Bank, National Bank of Samoa, and Samoa Commercial Bank. The assessment revealed that these commercial banks have a “very low risk” of money laundering.

Sophisticated Money Laundering Alert Systems

The CBS praised the banks’ sophisticated money laundering alert systems, stating they are of a “very high standard.” The Financial Intelligence Unit (FIU) examined the entire system and policies related to anti-money laundering (AML) and countering terrorist financing (CTF), assessing whether these policies were properly implemented to effectively counter money laundering.

Cooperation with FIU

All four commercial banks fully cooperated with the FIU during the onsite inspections. The FIU acknowledged that the commercial banks have made significant efforts to improve their AML/CTF systems and standards since its last inspection in 2017.

Concerns over Offshore Financial Centers

Samoan authorities have faced criticism for lax regulations regarding offshore financial centers. ABC reported on a company called Asiaciti, run by Australian businessman Graeme Briggs, which offered access to superannuation schemes and creditor-controlled companies in Samoa. The company allegedly enabled wealthy foreign clients to use legal loopholes to minimize or avoid tax.

CBS Denies Allegations

However, the CBS has denied these allegations, stating that Samoa is not listed as non-cooperative on any international blacklist regarding anti-money laundering and countering terrorist financing systems. The bank cited ratings from the Financial Action Task Force (FATF), a global standard-setter headquartered in France, which assesses countries’ anti-money laundering regulations.

Concerns over Transparency and Cooperation

Despite this, critics argue that Samoa’s lack of transparency and cooperation with international authorities raises concerns about the country’s susceptibility to money laundering and fraud schemes. Asiaciti’s activities have sparked investigations by Australian authorities, highlighting the need for improved financial regulations in Samoa.

• Key points:
  • The Central Bank of Samoa (CBS) has assessed four major commercial banks in Samoa, finding them to have a “very low risk” of money laundering.
  • The CBS praised the banks’ sophisticated money laundering alert systems and acknowledged their efforts to improve AML/CTF standards.
  • Critics argue that Samoa’s lack of transparency and cooperation with international authorities raises concerns about the country’s susceptibility to money laundering and fraud schemes.