Financial Crime World

Nauru Takes Steps to Combat Financial Crimes: An Overview of the Anti-Money Laundering and Targeted Financial Sanctions Bill 2023

The Republic of Nauru is taking action against money laundering, terrorist financing, and other financial crimes by introducing the Anti-Money Laundering and Targeted Financial Sanctions Bill 2023. The Bill aims to establish a legal framework for detecting and preventing these illicit activities in Nauru.

Objectives of the Bill

The objectives of the Bill align with the 40 Recommendations of the Financial Action Task Force (FATF). The Bill seeks to:

  1. Establish effective measures for combating Money Laundering (AML), Terrorist Financing (CFT), and Proliferation Financing (PFT).
  2. Enable detection and prevention of AML/CFT and proliferation financing.
  3. Protect Nauru’s financial system from being used for ML/TF and PFT.
  4. Empower the Financial Intelligence Unit (FIU) and other departments.
  5. Allow for the enforcement of targeted financial sanctions.
  6. Require reporting entities to comply with AML/CFT regulations.
  7. Enhance Nauru’s international reputation.
  8. Facilitate cooperation among reporting entities and government agencies.
  9. Establish public confidence in the financial system.

Key Definitions in the Bill

The following definitions will be used in the Bill to clarify terms related to AML and Targeted Financial Sanctions:

  • Account
  • Activity
  • AML/CFT
  • AML/CFT compliance program
  • Bearer negotiable instruments
  • Beneficial owner
  • Beneficiary entity
  • Business relationship
  • Cash
  • Criminal conduct
  • Criminal property
  • Currency
  • Customer
  • Document
  • Domestic electronic currency transfer
  • Electronic currency transfer
  • False name
  • Financial crime
  • Financial group
  • Financial institution
  • FIU
  • Foreign financial intelligence body
  • Foreign law enforcement body
  • High value dealer
  • Identification information
  • Intermediary entity
  • International electronic currency transfer
  • Money laundering
  • Money or value transfer service
  • Occasional transaction
  • Originating entity
  • Politically exposed person
  • Property
  • Record
  • Reporting entity
  • Sender
  • Senior management
  • Shell bank

The Bill aims to create a clear and comprehensive legislative framework to address financial crimes and ensure international compliance.

Contact Us

For more information, please contact our team at info@naurufinance.gov.nr.