Nauru Takes Major Step in Fight Against Financial Crime

Nauru has taken a significant step forward in its fight against financial crime by strengthening its financial intelligence unit and implementing new laws and regulations to prevent money laundering and terrorist financing.

Strengthening the Financial Intelligence Unit

The Financial Intelligence Unit (FIU), established within the Department of Justice and Border Control, is responsible for performing its functions under the Anti-Money Laundering and Targeted Financial Sanctions Act 2023. The FIU has been working closely with international partners to ensure that Nauru’s laws meet international standards.

Mutual Evaluation Process

As part of its efforts, Nauru underwent a Mutual Evaluation (ME) process, a peer review that measures the country’s compliance and effectiveness in combating money laundering and terrorist financing. In preparation for the ME, the FIU worked with the Office of the Legislative Drafter to draft new laws and amend existing ones, with technical assistance from the Asia Pacific Group on Money Laundering.

Implementing New Laws and Regulations

The FIU has developed standard operating procedures, including anti-money laundering and targeted financial sanctions regulations, as well as guidelines for businesses and professionals. The unit has also issued circulars and guides on best practices for non-profit organizations and beneficial ownership disclosure.

Cash Smuggling Prevention Measures

Nauru’s efforts have also focused on preventing cash smuggling, with the implementation of regulations on cash border crossings and guidelines for suspicious activity reporting. The FIU has also issued policies and guidelines for virtual asset service providers and cash border regulation frameworks.

International Recognition and Commitment

Nauru’s commitment to combating financial crime is reflected in its membership of international organizations such as the Financial Action Task Force (FATF) and the Asia Pacific Group on Money Laundering. The country’s efforts have been recognized by the United Nations Security Council, which has designated Nauru as a country that meets the FATF’s standards for combating money laundering and terrorist financing.

National Strategy and Risk Assessment

The government of Nauru has developed a national strategy for anti-money laundering and combating the financing of terrorism, as well as a national risk assessment to identify areas where further action is needed.

Conclusion

Nauru’s efforts to combat financial crime have been recognized by the international community, with the country being commended for its progress in this area. The FIU continues to work closely with international partners to ensure that Nauru’s laws and regulations meet international standards, and the government remains committed to combating financial crime through its membership of international organizations.

Contact Information

The Financial Intelligence Unit is located at the Department of Justice and Border Control in Yaren District, Republic of Nauru.