Financial Crime World

Nauru Tackles Financial Inclusion and Crime Prevention with New Legislation and Initiatives

The Financial Intelligence Unit (FIU) has played a crucial role in promoting financial inclusion and crime prevention in Nauru, with the country recently undergoing its Mutual Evaluation (ME). The ME is a peer review process that assesses Nauru’s compliance and effectiveness against international standards on money laundering and combating the financing of terrorism.

Preparing for the Mutual Evaluation

To prepare for the ME, the FIU worked closely with the Office of the Legislative Drafter to draft new laws and amend existing ones. Technical assistance was provided by the Asia Pacific Group on Money Laundering (APGML) to ensure that Nauru’s legislation meets international standards.

New Laws and Regulations

The FIU has established Standard Operation Procedures to prevent money laundering and terrorist financing. This includes regulations such as:

  • Anti-Money Laundering and Targeted Financial Sanctions (Parallel Financial Investigation) Regulations 2024
  • Cash Border Regulation Framework Guide
  • Registration and Licensing of Businesses, Partnerships, Corporations, Associations, Trusts, Private Security Information Sheet
  • Virtual Asset Service Provider Policy

Initiatives to Promote Financial Inclusion and Crime Prevention

Nauru’s government has implemented various initiatives to promote financial inclusion and crime prevention. These include:

National Strategy for Anti-Money Laundering and Combating the Financing of Terrorism

The country’s National Strategy outlines measures to prevent money laundering and terrorist financing, including:

  • Establishing guidelines and circulars on beneficial ownership, non-profit organizations, and suspicious activity reporting
  • Developing guides and circulars to help businesses and individuals comply with anti-money laundering and combating the financing of terrorism regulations

Guides and Circulars for Compliance

The FIU has released several guides and circulars to help businesses and individuals comply with anti-money laundering and combating the financing of terrorism regulations. These include:

  • Anti-Money Laundering and Targeted Financial Sanctions (Fit and Proper Person) Criteria
  • Anti-Money Laundering and Targeted Financial Sanctions (Simplified Due Diligence) Guide 2023
  • Suspicious Activity Report Form

Preventing the Misuse of Virtual Assets

Nauru has implemented measures to prevent the misuse of virtual assets. The country’s Virtual Asset Service Provider Policy outlines the requirements for virtual asset service providers to comply with anti-money laundering and combating the financing of terrorism regulations.

Conclusion

Overall, Nauru’s efforts to promote financial inclusion and crime prevention are aimed at protecting the country’s financial system and preventing criminal activity. The government’s initiatives have been praised by international organizations, and the country is now considered a leader in the region when it comes to anti-money laundering and combating the financing of terrorism regulations.