Comprehensive Framework for Combating Financial Crime in the Republic of Nauru

The Republic of Nauru has established a robust framework to combat financial crime, encompassing various aspects of money laundering, tax evasion, extortion, forgery, and insider trading. This article provides an overview of the key points and obligations outlined in these regulations.

Scope

These regulations cover a broad range of financial crimes, including:

Money laundering
Tax evasion
Extortion
Forgery
Insider trading

The definition of a financial crime is inclusive of any offense related to direct taxes, indirect taxes, or other offenses relevant to or associated with a financial crime.

Reporting Entity Obligations

Reporting entities, such as banks and financial institutions, are required to report suspicious activities or matters to the Nauru Police Force or other law enforcement agencies. This includes:

Suspicious transactions
Large cash transactions
Unusual patterns of activity

FIU Obligations

The Financial Intelligence Unit (FIU) is responsible for analyzing and referring suspicious activity reports, trade-based money laundering reports, and other relevant information to law enforcement agencies.

Director of Public Prosecution’s Role

The Director of Public Prosecution may recommend parallel investigations into financial crimes related to predicate offenses being investigated or charged. This ensures that all avenues are explored in the pursuit of justice.

Implementation and Responsibilities

Various authorities, including:

Nauru Police Force
FIU
Director of Public Prosecution
Nauru Revenue Office
Nauru Customs Service
Reporting entities
Other law enforcement agencies

are responsible for implementing these regulations. Coordination and cooperation among these authorities are crucial in effectively combating financial crime.

Asset Identification and Tracing

Responsible persons must coordinate efforts to identify, trace, freeze, and seize assets suspected of being proceeds of crime or subject to confiscation. This includes:

Identifying assets linked to financial crimes
Tracing the origin of these assets
Freezing and seizing assets as necessary

Controlled Delivery

The Commissioner of Police or authorized officers may authorize controlled delivery in cases where a person is suspected of committing or about to commit a predicate offense related to a financial crime. This allows for the safe and lawful interception of illicit goods or information.

Responsible authorities must share information for the purpose of these regulations, while maintaining confidentiality and without prejudice to ongoing investigations or prosecutions. This ensures that all relevant parties have access to the necessary information to effectively combat financial crime.

Record-Keeping

Information, evidence, and other material obtained during investigations must be preserved and maintained for 7 years. This allows for the thorough analysis of data and the potential re-opening of cases if new information becomes available.