Financial Crime World

Nauru Introduces New Banking Requirements to Combat Money Laundering and Terrorist Financing

The Nauruan government has introduced new banking requirements aimed at combating money laundering and terrorist financing in the country.

Revised Policy for Banks

Under the revised policy, banks operating in Nauru are required to adhere to strict guidelines to prevent such illegal activities. The key requirements include:

  • Engaging only in customary banking services and not participating in any business that may facilitate money laundering or terrorist financing;
  • Establishing a robust anti-money laundering (AML) system, which includes:
    • Customer due diligence
    • Ongoing monitoring of transactions
    • Reporting of suspicious transactions
  • Designating a compliance officer who will be responsible for ensuring the bank’s AML/CTF policies are implemented and monitored

Implementation and Monitoring Agencies

The government has established various agencies to implement and monitor the policy, including:

  • Minister for Finance
  • Registrar of Banks
  • Nauru Financial Intelligence Unit (FIU)
  • Registrars of Business Names, Corporations, Partnerships or Trusts
  • Authority established under the Beneficial Ownership Act 2017

Compliance with International Principles

Nauru’s position on the application of the Basel Committee on Banking Supervision Principles is also provided for in statute to ensure transparency and accountability. The country is not a member of the International Association of Insurance Supervisors (IAIS) or the International Organisation of Securities Commissions (IOSC), but is committed to upholding their principles should service providers set up business in Nauru.

Importance of Financial Institutions

The government has emphasized the importance of financial institutions in any society, contributing to the development of an economy and bringing many benefits not just to individuals but a country as a whole. However, these institutions are also prone to vulnerabilities that can be exploited by those engaged in illegal activities.

Commitment to Preventing Money Laundering and Terrorist Financing

With the new AML/CTF legislation in place, the government is committed to preventing contravening acts leading to money laundering and terrorist financing, which protects Nauru and its citizens from their effects.

Contact Information

For further information regarding this policy, contact: