Nauru's AML/CFT Struggles

Nauru’s Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) Efforts

Classification as a Monitored Jurisdiction: Nauru is listed by the European Union (EU) as a “Monitored Jurisdiction”.
Laws against Money Laundering: The country has enacted laws to prevent money laundering, including provisions that criminalize all serious crimes.
Liability for Legal Persons: Legal persons in Nauru can be held criminally and civilly liable for money laundering offenses.

Receipt of Suspicious Transaction Reports (STRs) and Currency Transaction Reports (CTRs): In 2012, no STRs or CTRs were received by the authorities.

Need for Additional Controls in the Offshore Sector: The report highlights a need for enhanced controls within the offshore sector.
Government Focus on AML/CFT Efforts: The Government of Nauru is advised to prioritize providing effective AML/CFT measures for the offshore sector through state-owned incorporation agents and trust registrars.
Attracting a Banking Institution with AML/CFT Controls: The country is encouraged to attempt to attract a banking institution that would be subject to AML/CFT regulations.

Non-Conformity with International Standards:
- Criminalization of Non-Drug Related Money Laundering: Nauru does not conform to international standards in criminalizing money laundering beyond drug-related offenses.
- Arrangements for Asset Sharing: The country’s arrangements for asset sharing do not meet international requirements.
- International Law Enforcement Cooperation: Nauru is also non-conformant with regard to cooperating with international law enforcement agencies.