Financial Crime World

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Nauru’s Requirements for Financial Institutions

The Government of Nauru has outlined the requirements for financial institutions operating in the country, emphasizing their commitment to preventing money laundering and terrorist financing.

Customary Banking Services Only

Applicant banks will only engage in customary banking services, such as:

  • Deposit-taking
  • Lending
  • Investment activities

They must not venture into any other business unrelated to banking services.

Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) Policy

The AML/CFT Policy for financial institutions in Nauru is designed to prevent money laundering and terrorist financing. The policy requires banks to:

  • Implement effective systems for detecting and reporting suspicious transactions
  • Maintain accurate records

Agencies Involved

Several agencies are involved in implementing the AML/CFT Policy, including:

  • Minister for Finance
  • Registrar of Banks
  • Nauru Financial Intelligence Unit (FIU)
  • Registrars of Business Names, Corporations, Partnerships or Trusts, and Authority established under Beneficial Ownership Act 2017

Basel Committee on Banking Supervision Principles

Nauru has adopted the Basel Principles, which have been incorporated into the country’s banking laws. The principles aim to ensure:

  • Transparency
  • Accountability in the banking sector

International Associations

Nauru is not a member of the International Association of Insurance Supervisors (IAIS) or the International Organisation of Securities Commission (IOSC), but is committed to adopting their standards and principles if insurance and securities service providers set up business in Nauru.

Conclusion

The role of financial institutions in Nauru is crucial for economic development. However, vulnerabilities in the sector can be exploited by criminals. The AML/CFT Policy aims to prevent money laundering and terrorist financing by requiring banks to implement effective systems for detecting and reporting suspicious transactions. Failure to comply with the policy may lead to contravening acts that can harm Nauru and its citizens.

Contact Information

For further information on the AML/CFT Policy, contact:

Note

This article is based on the provided text and has been rewritten in a style similar to a media article. The content may not reflect the actual views or opinions of the Government of Nauru or any other entity mentioned in the article.