Here is the article in markdown format:

The Republic of Nauru

National Strategy for Anti-Money Laundering and Combatting the Financing of Terrorism 2022-2025

Money Laundering Risks and Threats

Countries should identify, assess, and understand money laundering risks and threats related to the following types of financial transactions:

Cash Transactions: The use of cash in financial transactions can be a high-risk area for money laundering.
Wire Transfers: Wire transfers can be used to launder money through complex networks.
Electronic Fund Transfers: Electronic fund transfers can be used to move large amounts of money quickly and easily.

Countries should also consider other factors that could contribute to money laundering, such as:

Shell Companies or Other Opaque Legal Structures: Shell companies or other opaque legal structures can be used to hide the true ownership of assets.
Cash-Intensive Businesses: Cash-intensive businesses, such as restaurants and retail stores, can be vulnerable to money laundering.
Foreign Currency Exchange Services: Foreign currency exchange services can be used to launder money by exchanging one currency for another.

Countries should take commensurate action aimed at ensuring that these risks are mitigated effectively. This includes designating an authority or mechanism to coordinate actions to assess risks and allocate resources efficiently for this purpose. Where countries identify higher risks, they should ensure that their AML/CFT regime adequately addresses such risks.

Terrorist Financing Risks and Threats

Countries should identify, assess, and understand terrorist financing risks and threats related to the following types of financial transactions:

Cash Transactions: The use of cash in financial transactions can be a high-risk area for terrorist financing.
Wire Transfers: Wire transfers can be used to launder money through complex networks.
Electronic Fund Transfers: Electronic fund transfers can be used to move large amounts of money quickly and easily.
The Provision of Funds or Financial Services to Entities Listed Under UN Security Council Resolutions: Providing funds or financial services to entities listed under UN Security Council resolutions can be a high-risk area for terrorist financing.

Countries should also consider other factors that could contribute to terrorist financing, such as:

Shell Companies or Other Opaque Legal Structures: Shell companies or other opaque legal structures can be used to hide the true ownership of assets.
Cash-Intensive Businesses: Cash-intensive businesses, such as restaurants and retail stores, can be vulnerable to money laundering.
Foreign Currency Exchange Services: Foreign currency exchange services can be used to launder money by exchanging one currency for another.

Proliferation Financing Risks and Threats

Countries should identify, assess, and understand proliferation financing risks and threats related to the following types of financial transactions:

Cash Transactions: The use of cash in financial transactions can be a high-risk area for proliferation financing.
Wire Transfers: Wire transfers can be used to launder money through complex networks.
Electronic Fund Transfers: Electronic fund transfers can be used to move large amounts of money quickly and easily.
The Provision of Funds or Financial Services to Entities Listed Under UN Security Council Resolutions: Providing funds or financial services to entities listed under UN Security Council resolutions can be a high-risk area for proliferation financing.

Countries should also consider other factors that could contribute to proliferation financing, such as:

Shell Companies or Other Opaque Legal Structures: Shell companies or other opaque legal structures can be used to hide the true ownership of assets.
Cash-Intensive Businesses: Cash-intensive businesses, such as restaurants and retail stores, can be vulnerable to money laundering.
Foreign Currency Exchange Services: Foreign currency exchange services can be used to launder money by exchanging one currency for another.

Customer Due Diligence (CDD) Requirements

Countries should ensure that financial institutions, DNFBPs, and other relevant entities have in place CDD requirements that include:

Identifying the Customer: Identifying the customer is a critical step in CDD.
Verifying the Identity of the Customer: Verifying the identity of the customer helps to prevent identity theft and money laundering.
Understanding the Nature of the Business Relationship with the Customer: Understanding the nature of the business relationship with the customer helps to identify potential risks.

Countries should also require that these requirements are commensurate with the level of risk associated with the customer, and that they are updated as necessary to ensure ongoing compliance with AML/CFT regulations.

Targeted Financial Sanctions

Countries should have in place effective targeted financial sanctions regimes to prevent or mitigate money laundering and terrorist financing risks associated with designated persons and entities listed under UN Security Council Resolutions.

Countries should require financial institutions, DNFBPs, and other relevant entities to identify, assess, and take effective action to mitigate the risks associated with the provision of funds or financial services to entities listed under UN Security Council Resolutions.