Financial Crime World

Nauru: A Fragile State with Limited Capacity

Criminal Justice System

Nauru’s judicial system consists of several courts, but its ability to address organized crime is hindered by its limited capacity.

  • Judicial Structure: The country has a Supreme Court, Court of Appeals, District Court, and Family Court.
  • Organized Crime: There are no specific units dedicated to dealing with organized crime, as it is almost non-existent on the island.
  • International Assistance: Law enforcement for major investigations relies heavily on assistance from Australia and New Zealand.

Economic Environment

Nauru’s economic environment is weak due to its narrow base, absence of financial institutions, and strict land tenure restrictions.

  • Money Laundering: The country has made progress in anti-money laundering efforts since the early 1990s.
  • Investment and Financial Flows: Nauru’s unattractive investment climate makes it difficult for financial flows into the country.

Civil Society and Social Protection

Nauru lacks the capacity to implement victim and witness support programs, and refugees face poor living conditions.

  • Victim and Witness Support: The country lacks the resources to provide support for victims and witnesses of crime.
  • Refugee Conditions: Refugees in the Regional Processing Centre face miserable living conditions and are vulnerable to mistreatment.
  • Civil Society Actors: There are no organizations specifically focused on organized crime, but there are advocacy groups for women and development-focused organizations.

Security

Nauru’s security is a concern due to its lack of military force and vulnerability to cyber-attacks.

  • Defense: Defense is the responsibility of Australia under an informal agreement.
  • Cyber-Security: The country lacks infrastructure and border control capacities, making it vulnerable to cyber-attacks.
  • Police Force: The Nauru Police Force has a cyber-security division but limited capacity to address security threats.

Human Rights

Nauru’s human rights record is a concern due to the abuse of refugees and asylum seekers within the Regional Processing Centre.

  • Abuse of Refugees: Widespread abuse, including denial of healthcare for life-threatening conditions and high rates of self-harm attempts.
  • Government Suspicions: The government has been suspected of money laundering practices and other offences.