Financial Crime World

Nauru Enhances Anti-Money Laundering Efforts with Regulatory Framework Updates

The Republic of Nauru has strengthened its regulatory framework to combat financial crimes, establishing a new Financial Intelligence Unit (FIU) and amending existing laws.

Establishing the Financial Intelligence Unit

The FIU is a statutory body responsible for:

  • Conducting suspicious transaction reporting
  • Investigating money laundering cases
  • Providing financial intelligence to law enforcement agencies

In preparation for a Mutual Evaluation by the Asia-Pacific Group on Money Laundering (APGML), the FIU worked closely with the Office of the Legislative Drafter to draft new laws and amend existing ones.

Key Updates to the Regulatory Framework

The updated framework includes:

  • Anti-Money Laundering and Targeted Financial Sanctions Act 2023: Establishes the FIU’s functions and responsibilities
  • Proceeds of Crime Act 2004 and Regulations: Regulates the handling of proceeds from crime
  • Trusts (Trustee Duties) Regulations 2023: Sets out duties for trustees

Implementing New Measures

Nauru has implemented new regulations to strengthen anti-money laundering and combating the financing of terrorism (AML/CFT) measures. The government has also developed a National Strategy for Anti-Money Laundering and Combatting the Financing of Terrorism.

Guidelines and Resources

The Nauru FIU has released guidelines and resources to support businesses and individuals in complying with AML/CFT regulations:

  • Suspicious Activity Report Form: For reporting suspicious transactions
  • Cash Border Regulation Framework Guide: Outlines cash border regulation procedures
  • Registration and Licensing of Businesses, Partnerships, Corporations, Associations, Trusts, Private Security Information Sheet: Required for businesses to register and license
  • Beneficial Ownership Guide: Provides guidance on beneficial ownership requirements
  • Non-Government or Non-Profit Organisation Best Practice Guide: Offers best practices for non-government organizations

Conclusion

The updated regulatory framework is a significant step forward in enhancing Nauru’s ability to combat financial crimes and protect its financial system. The FIU will continue to work closely with stakeholders to ensure effective implementation of these measures.