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Nauru’s Proactive Approach to Combating Money Laundering and Financing of Terrorism

Overview

Nauru has been taking a proactive approach to combating money laundering and financing of terrorism, as evident from their collaboration with law enforcement authorities. In this case study, we will examine the key points that highlight Nauru’s efforts in this area.

Virtual Assets and Virtual Asset Service Providers (VASPs)

VASP Policy Document: Nauru has issued a VASP Policy document outlining international and domestic requirements for VASPs operating in the country.
Coordination with Supervisory Authorities: The Financial Intelligence Unit (FIU) works closely with Nauruan supervisory authorities, law enforcement agencies, and other stakeholders to identify specific risks and vulnerabilities and find mitigating strategies.

National Strategy for Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT)

National Strategy 2022-2025: Nauru has introduced a National Strategy for AML/CFT 2022-2025, which sets out specific goals and objectives.
Establishment of Committees: The strategy includes the establishment of three committees:
- AML Governance Committee (AMLGC)
- AML Officials Committee (AMLOC)
- Private Partners Committee (PPC)

Public-Private Partnership

Forming a Public-Private Partnership (PP): The AMLOC and PPC form a PP to combat money laundering, CFT, proliferation financing, and other financial crimes.

Case Study 6: FIU Dissemination of Case Information

Disseminating Case Information: The FIU disseminates case information related to alleged forgery at the Passport office to the Nauru Police Force.

Conclusion

Nauru’s proactive approach to combating money laundering and financing of terrorism includes:

Issuing policies and guidelines for VASPs
Collaborating with supervisory authorities and law enforcement agencies
Establishing a National Strategy for AML/CFT
Forming a Public-Private Partnership to combat financial crimes