Nauru Introduces New Anti-Money Laundering and Targeted Financial Sanctions Act
Strengthening Nauru’s Financial System against Illicit Activities
The Parliament of Nauru has passed the Anti-Money Laundering and Targeted Financial Sanctions Act 2023, aimed at combating money laundering, terrorist financing, and proliferation financing in the country. This new law is designed to strengthen Nauru’s financial system and prevent its use for illegal activities.
Objectives of the Act
The Act aims to achieve several key objectives, including:
- Providing effective legal, regulatory, and operational measures to combat money laundering and terrorist financing
- Detecting and preventing suspicious transactions
- Protecting the country’s financial system from being used for illegal purposes
- Empowering government agencies to carry out their powers and responsibilities
- Enforcing targeted financial sanctions
- Enhancing international cooperation
Key Definitions and Scope of Criminal Conduct
The Act defines key terms such as:
- Account
- Activity
- AML/CFT compliance programme
- Bearer negotiable instruments
- Beneficial owner
- And others
It also outlines the scope of criminal conduct, including offenses related to: + Tax evasion + Insider trading + Market manipulation + Other financial crimes
Designation of Financial Intelligence Unit and Reporting Requirements
The Financial Intelligence Unit has been designated as the national coordination body for AML/CFT. Reporting entities are required to establish procedures and commit resources to comply with the requirements of combating money laundering, terrorist financing, and proliferation financing.
Expected Outcomes
The Act is expected to:
- Enhance public confidence in Nauru’s financial system
- Strengthen the country’s international reputation
- Facilitate cooperation among domestic and international partners vested with similar duties and responsibilities
Government Statement
“This new law demonstrates our commitment to protecting our financial system from abuse and ensuring that it is used for legitimate purposes,” said a government spokesperson. “We believe that this legislation will help us to achieve our goals and maintain a strong and stable economy.”