Financial Crime World

Nauru’s Banking Regulations Tighten Up to Combat Money Laundering and Terrorist Financing

In a bid to strengthen its financial sector and combat money laundering and terrorist financing, the Nauruan government has introduced new regulations for banks operating in the country.

Strengthening Financial Sector

The Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) Policy aims to prevent financial crimes by outlining strict guidelines for banks. The policy came into effect on [date] and outlines the responsibilities of banks, including reporting suspicious transactions and maintaining accurate records.

Key Requirements

  • Establish a compliance officer responsible for ensuring the bank is in compliance with AML/CFT regulations.
  • Provide training for all bank employees to ensure they are aware of their roles and responsibilities in preventing financial crimes.
  • Report all suspicious transactions to the Financial Intelligence Unit (FIU) within a specified timeframe.
  • Maintain accurate records for at least five years, including details of all transactions.

Penalties for Non-Compliance

The policy outlines penalties for banks that fail to comply with AML/CFT regulations, including:

  • Fines
  • Suspension or revocation of licenses
  • Criminal prosecution in extreme cases

Agencies Involved

Several agencies are involved in implementing the AML/CFT Policy, including:

  • Minister for Finance
  • Registrar of Banks
  • Nauru Financial Intelligence Unit (FIU)
  • Registrars of Business Names, Corporations, Partnerships or Trusts
  • Authority established under Beneficial Ownership Act 2017

International Standards

Nauru has committed to following international standards on banking supervision and regulation. The country has adopted the Basel Committee on Banking Supervision Principles, which provides a framework for banks to ensure they are operating safely and soundly.

Conclusion

The AML/CFT Policy is an important step in strengthening Nauru’s financial sector and preventing financial crimes. By adhering to these regulations, banks can help protect the country from money laundering and terrorist financing while also ensuring the integrity of their own operations.

Contact Information

For further information on this policy, please contact: