Financial Crime World

NAURU TAKES STEPS TO COMBAT FINANCIAL CRIMES

Establishment of Regulatory Bodies

The Republic of Nauru has made significant progress in establishing regulatory bodies to combat financial crimes, following its Mutual Evaluation (ME) by the Financial Actions Task Force (FATF). Under the Anti-Money Laundering and Targeted Financial Sanctions Act 2023, the Financial Intelligence Unit (FIU) was set up within the Department of Justice and Border Control. The FIU is responsible for performing key functions to prevent money laundering and combat terrorism financing.

Key Functions of the FIU

  • Collecting and analyzing data on suspicious transactions
  • Conducting investigations
  • Providing intelligence to law enforcement agencies
  • Working closely with other government agencies, including the Office of the Legislative Drafter, to ensure that Nauru’s laws meet international standards

Strengthening Anti-Money Laundering Regime

In preparation for its ME, Nauru drafted new laws and amended existing ones to strengthen its anti-money laundering regime. Technical assistance was provided by the Asia Pacific Group on Money Laundering (APGML) to help with the drafting process.

New Laws and Regulations

  • Anti-Money Laundering and Targeted Financial Sanctions (Parallel Financial Investigation) Regulations 2024
  • Proceeds of Crime Act 2004 and Regulations
  • Trusts (Trustee Duties) Regulations 2023

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

Nauru has also developed a National Strategy for Anti-Money Laundering and Combatting the Financing of Terrorism to guide its efforts. This strategy outlines Nauru’s approach to preventing money laundering and terrorism financing, as well as its commitment to cooperating with international partners to combat these threats.

Recognition by the FATF

Nauru’s progress in combating financial crimes has been recognized by the FATF, which noted that the country has made significant improvements in its anti-money laundering regime. The FIU is committed to continuing this work and ensuring that Nauru remains a leader in preventing money laundering and terrorism financing in the Pacific region.