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Nauru Implements FATF Recommendations to Combat Money Laundering and Terrorist Financing

The Republic of Nauru has been working to strengthen its anti-money laundering (AML) and counter-terrorism financing (CTF) regime by implementing a set of 40 recommendations issued by the Financial Action Task Force (FATF). The country’s National Strategy for Anti-Money Laundering and Combatting the Financing of Terrorism 2022-2025 outlines specific goals and timelines to achieve these objectives.

Key Objectives of the National Strategy

The strategy includes several key objectives, including:

  • Completing Legislative Drafting Project: To complete the legislative drafting project by September 2023
  • Establishing AML/CFT Governance Structure: To establish the Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT) Governance Committee (AMLC), AML/CFT Liaison Office (AMLOC), and Private Sector Partnership (PPP) for better collaboration by May-June 2023
  • Conducting Risk Identification Exercise: To conduct an AML/CFT risk identification exercise by September 2023
  • Enhancing Border Currency Reporting: To enhance border currency reporting by June 2023
  • Implementing Targeted Financial Sanctions: To implement targeted financial sanctions by September 2023

FATF Recommendations

The National Strategy also includes the FATF recommendations, which cover various aspects of combating money laundering and terrorist financing, including:

  • Risk Assessment: Assessing risks and applying a risk-based approach to ensure that measures are commensurate with the identified risks
  • National Cooperation and Coordination: National cooperation and coordination among relevant authorities, including policy-makers, financial intelligence units, law enforcement agencies, supervisors, and other competent authorities
  • Requirements for Financial Institutions: Requirements for financial institutions and designated non-financial businesses and professions (DNFBPs) to identify, assess, and take effective action to mitigate their money laundering, terrorist financing, and proliferation financing risks.

Overall Objective

The National Strategy for Anti-Money Laundering and Combatting the Financing of Terrorism 2022-2025 aims to ensure that Nauru’s AML/CFT regime is robust and effective in preventing and mitigating the risks associated with money laundering, terrorist financing, and proliferation financing.