Financial Crime World

NAURU’S BLACKLISTED BANKS RE-EMERGE IN ASSET RECOVERY EFFORTS

A warning has been issued by the International Chamber of Commerce’s (ICC) Financial Investigation Bureau (FIB) that several blacklisted Nauru-registered banks are still operating, despite being designated a money laundering concern by the US Department of the Treasury in 2002.

Background on Blacklisted Banks

In 2001, the US government introduced the USA Patriot Act, which made several amendments to the anti-money laundering provisions of the Bank Secrecy Act. This targeted offshore banks with no physical or legal presence in other countries, where money laundering was not a criminal offense.

Key Provisions

  • All US financial institutions are prohibited from opening or maintaining accounts for foreign financial institutions that involve Nauru or any institution licensed by Nauru, except for the Bank of Nauru which also serves as the Central Bank.
  • The US Department of the Treasury has designated several Nauru-registered banks as money laundering concerns.

Warning from the FIB

The FIB is concerned that some financial institutions may be unwittingly trading with or maintaining correspondent relationships with these blacklisted banks. Assistant Director Jon Merrett stated, “It appears some of the blacklisted Nauru financial institutions have re-emerged and are attempting to disguise their origins.”

Prevention and Assistance

To help prevent confusion and reduce the risk of non-compliance, the FIB has catalogued a complete list of all Nauru banks and financial institutions named by the US Department of the Treasury. Financial institutions can contact the FIB for clarification and assistance in tracking assets or exiting correspondent relationships with blacklisted banks.

Steps to Take

  • Identify the parties you are dealing with.
  • Avoid unwittingly trading with blacklisted banks.
  • Contact the FIB at fib@icc-ccs.org for full details on how to take advantage of this service.

Conclusion

The ICC’s FIB is committed to supporting asset recovery efforts and preventing financial crimes in Nauru. By taking proactive steps, financial institutions can avoid non-compliance and ensure a safer, more secure financial environment.