Financial Crime World

Nauru Enhances Anti-Money Laundering and Combating Financing of Terrorism Efforts

The Republic of Nauru has announced a new strategy aimed at strengthening its efforts to combat money laundering (AML) and combating the financing of terrorism (CFT). The National Strategy for Anti-Money Laundering and Combating the Financing of Terrorism 2022-2025 outlines five key pillars to prevent, deter, detect, and disrupt AML/CFT contravening activities.

Pillar One: Develop Skills and Capacity

The strategy emphasizes the importance of developing skills and capacity within law enforcement agencies. This includes:

  • Promoting inter-agency training on AML/CFT issues
  • Encouraging online self-paced training
  • Identifying training needs for technical skills such as analytical and supervisory abilities

Pillar Two: Improve Data Collection Mechanism

The strategy aims to improve data collection mechanisms by improving the collection and sharing of statistical information on AML/CFT activities. This includes:

  • Conducting awareness campaigns with AML Committees
  • Developing templates for collecting statistical information
  • Exploring technology-based solutions for collecting, sharing, and storing data

Pillar Three: Enhance International Cooperation

The strategy recognizes the importance of international cooperation in combating AML/CFT contravening activities. Nauru has established strong working relationships with international partners to facilitate cooperation and will continue to develop these relationships to address identified risks.

Key Objectives

The strategy includes several key objectives, including:

  • Completion of legislative drafting projects by September 2023
  • Establishment of the AMLGC, AMLOC, and PPP for better coordination by March 2024
  • Improved data collection mechanisms by June 2024

FATF Recommendations

The strategy also outlines compliance with the Financial Action Task Force (FATF) recommendations on AML/CFT policies and coordination. This includes:

  • Assessing risks and applying a risk-based approach
  • Identifying and addressing proliferation financing risks
  • Requiring financial institutions to identify and mitigate their risks

Nauru’s new strategy demonstrates its commitment to combating money laundering and combating the financing of terrorism, and its willingness to work with international partners to address these critical issues.