Financial Crime World

Nauru Takes Major Step Against Money Laundering with New Anti-Financial Crimes Bill

The Pacific Island nation of Nauru is strengthening its stance against money laundering, terrorist financing, and proliferation financing with the introduction of the new Anti-Money Laundering and Targeted Financial Sanctions Bill 2023. Here’s what the bill entails:

Explanatory Memorandum

The Anti-Money Laundering and Targeted Financial Sanctions Bill 2023 aims to establish the Anti-Money Laundering and Targeted Financial Sanctions Act 2023. Its primary objectives are:

  1. Combating money laundering, terrorist financing, and proliferation financing: Nauru seeks to provide effective measures against these illegal activities in accordance with the Financial Action Task Force (FATF) recommendations.
  2. Protecting the financial system: The legislation aims to safeguard Nauru’s financial system from being used for illegal activities.
  3. Empowering authorities: The Bill empowers the Financial Intelligence Unit (FIU) and other competent authorities to implement their functions effectively.
  4. Enforcing targeted financial sanctions: The new law will enable the enforcement of targeted financial sanctions.

Key Definitions

The Bill clarifies several key terms:

  • Account: This term includes a wide range of financial relationships, such as bearer negotiable instruments, closed accounts, and dormant accounts.
  • Activity: This term refers to any act or omission made by a person, whether it relates to a transaction or not.
  • Financial crime: This term encompasses various criminal acts, including money laundering, terrorist financing, and dealing with criminal property.
  • Criminal conduct: This term includes any offense with a maximum penalty of two years imprisonment or a fine above $5,000, and offenses under the Customs Act 2014 and the Copyright Act 2019.

Nauru’s commitment to upholding international obligations and promoting transparency within its financial system is underpinned by this legislative development. Stay tuned for further updates on the progress and impact of the new law on Nauru’s financial sector.