Financial Crime World

Nauru Unveils Ambitious Plan to Combat Money Laundering and Terrorism Financing

Introduction

The Republic of Nauru has launched a comprehensive five-pillar national strategy aimed at combating money laundering (AML) and terrorism financing (CFT). This strategic plan, which runs from 2022 to 2025, seeks to enhance the country’s ability to prevent, detect, and disrupt AML/CFT activities.

Key Objectives

The key objectives of the strategy include:

  • Promoting inter-agency training on AML/CFT issues
  • Encouraging online self-paced training
  • Identifying training needs for technical skills such as analytical and supervisory skills
  • Developing a data collection mechanism to improve the sharing of statistical information on AML/CFT-related activities

Strategy Implementation

To achieve its objectives, Nauru has established a number of targets, including:

  • Completion of legislative drafting projects
  • Establishment of AML/CFT bodies
  • Implementation of targeted financial sanctions

The Financial Intelligence Unit (FIU) will be responsible for monitoring and assessing the effectiveness of the strategy, with annual reports submitted to the Council. All key stakeholders are expected to provide support by ensuring compliance with the strategy at their respective levels.

International Cooperation

Nauru is committed to international cooperation in combating AML/CFT activities. The government has established strong working relationships with international counterparts and will continue to develop these partnerships to facilitate cooperation.

Reproduction of FATF Recommendations

In a major development, Nauru has reproduced the 40 Financial Action Task Force (FATF) Recommendations on Combating Money Laundering and the Financing of Terrorism & Proliferation in its national strategy. The recommendations provide a framework for countries to assess risks, apply a risk-based approach, and take commensurate action to mitigate AML/CFT risks.

Conclusion

The government’s commitment to combating AML/CFT activities is seen as a major step forward in strengthening the country’s financial system and protecting it from the threats posed by these illicit activities.