Financial Crime World

Nauru Takes a Stand Against Money Laundering and Terrorism Financing

The Republic of Nauru has launched its National Strategy for Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) 2022-2025, aimed at strengthening its efforts to prevent, detect, and disrupt AML/CFT activities.

Strengthening Capacity and Skills

Under this strategy, law enforcement agencies will have opportunities to develop their skills and capacity in addressing AML/CFT risks. The Financial Intelligence Unit (FIU) will promote inter-agency training on AML/CFT issues, focusing on shared experiences and on-the-job learning. Additionally, online self-paced training on AML/CFT will be encouraged, offered without cost by international organizations.

• Technical skills training, including analytical and supervisory skills, will also be identified with technical assistance from regional and international partners and donors.

Improving Data Collection Mechanisms

The strategy aims to improve the collection and sharing of statistical information on AML/CFT issues across sectors. To achieve this:

  • Awareness campaigns will be conducted with AML Committees on the obligation of recording and collecting statistical information on AML/CFT activities.
  • A template with guidelines on the collection of statistical information for AML/CFT will be developed, and periodic collection of information (every 3-6 months) will be established by the FIU.
  • Technology will also be explored as an option for improving collecting, sharing, and storing statistical information.

Annual Reporting and Monitoring

The FIU will be responsible for monitoring and assessing the effectiveness of the strategy, reporting progress on an annual basis. The strategy will be reviewed regularly to ensure its implementation is effective in addressing AML/CFT risks.

International Cooperation

Nauru has committed to implementing international standards set by the Financial Action Task Force (FATF) to combat money laundering, terrorist financing, and proliferation financing. Specifically:

  • Recommendation 1 emphasizes the importance of assessing risks and applying a risk-based approach to ensure measures are commensurate with the identified risks.
  • Recommendation 2 highlights the need for national cooperation and coordination among policymakers, financial intelligence units, law enforcement authorities, supervisors, and other relevant competent authorities to combat money laundering, terrorist financing, and proliferation financing.

Conclusion

Nauru’s National Strategy for AML/CFT 2022-2025 demonstrates its commitment to addressing AML/CFT risks and promoting international cooperation. The strategy aims to strengthen the country’s ability to prevent, detect, and disrupt AML/CFT activities, ultimately protecting its financial system and national security.