Solomon Islands Faces High Risk of Money Laundering and Terrorist Financing
The Solomon Islands (SI) is facing a significant risk of money laundering (ML) and terrorist financing (TF) due to various sectoral vulnerabilities and crime threats. A recent report categorizes all identified ML/FT risks as Very High or High level, posing a major concern for the country.
Identifying the Risks
The report highlights that attention is needed in all areas to mitigate the risks, but it will not be possible to implement all essential strategies immediately. Therefore, prioritization of the ML/FT risks is crucial.
- Lack of adequate resourcing of supervisory and law enforcement agencies
- Inadequate recording and maintaining of statistics
- Non-enactment of the Anti-Corruption Bill
The Threat of Terrorism Financing
The report notes that there has been no identification of financing of terrorism in the Solomon Islands, but it is possible that terrorist-related activities could derive from many crimes listed in the Solomon Islands Penal Code, regardless of value or from legitimate funds. The growth of social media and youth unemployment may increase the likelihood of TF within the domestic and regional context.
Challenges and Recommendations
The Counter Terrorism Act 2009 creates the offence of terrorist act and terrorist financing, but there is limited information or statistical data relating to terrorism, terrorist-related activities, or the financing of terrorism in SI. The report highlights several issues concerning TF, including:
- Capacity constraints
- Geographic and infrastructure challenges
- Population concerns
- Laws
- Cooperation and coordination
- International cooperation
- Courts and judiciary
- Communications
The report recommends that the SI government take measures to combat terrorism and extremism, prosecute terrorists and financiers of terrorism under the CT Act 2009, and increase law enforcement capacity through bilateral and multilateral assistance programs.
Protecting Non-Profit Organizations (NPOs)
The report also notes that NPOs are vulnerable to abuse for terrorist financing purposes. To mitigate this risk, stemming violent extremism and radicalization in SI through the use of social media should be a priority for the government.
Overall, the Solomon Islands faces significant challenges in combating ML/FT and TF. It is essential for the government to prioritize these risks, address underlying vulnerabilities, and implement effective strategies to prevent these threats from materializing.