NAURU TIGHTENS FINANCIAL SANCTIONS REGULATIONS TO COMBAT MONEY LAUNDERING AND TERRORISM
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Nauru has been working closely with the Financial Intelligence Unit (FIU) to draft new laws and amend existing ones in preparation for its Mutual Evaluation. The FIU is a statutory body responsible for performing its functions under the Anti-Money Laundering and Targeted Financial Sanctions Act 2023.
Strengthening Nauru’s Financial System
The FIU has developed standard operation procedures, including the Anti-Money Laundering and Targeted Financial Sanctions (Parallel Financial Investigation) Regulations 2024. These regulations aim to ensure that Nauru’s legislation meets international standards set by the Financial Actions Task Force (FATF).
Mutual Evaluation
Nauru has undergone its Mutual Evaluation, a peer review process that measures the country’s compliance and effectiveness against FATF recommendations on money laundering and combating the financing of terrorism. This evaluation is expected to strengthen Nauru’s financial system and prevent the use of its financial institutions for illicit activities.
Supporting Businesses in Compliance
The FIU has developed guidelines and regulations to support businesses in complying with anti-money laundering and targeted financial sanctions requirements. These include:
- Designated Non-Financial Business and Professions Customer Due Diligence Guideline
- Anti-Money Laundering and Targeted Financial Sanctions (High Risk Countries) Guideline 2023
- Nauru Virtual Asset Service Provider Policy
Training for Stakeholders
In addition, the FIU has provided training to financial institutions and other stakeholders on the implementation of anti-money laundering and targeted financial sanctions regulations.
National Strategy for Anti-Money Laundering and Combating the Financing of Terrorism
The FIU has also developed a National Strategy for Anti-Money Laundering and Combating the Financing of Terrorism to guide its efforts in preventing money laundering and terrorist financing.
Commitment to Compliance
The FIU is committed to ensuring that Nauru’s financial system is safe and secure, and that it complies with international standards on anti-money laundering and combating the financing of terrorism. The unit’s efforts are aimed at protecting Nauru’s reputation as a stable and reliable financial center in the Pacific region.
By implementing these measures, Nauru aims to demonstrate its commitment to combating money laundering and terrorist financing, while also strengthening its financial system and maintaining its position as a reputable financial hub in the region.