Financial Crime World

Nauru Introduces Tightened Anti-Terrorism Financing Regulations

The Republic of Nauru has strengthened its efforts in combating terrorism and proliferation financing by implementing new anti-terrorism financing regulations. The Anti-Money Laundering and Targeted Financial Sanctions (Financing of Terrorism and Proliferation Financing) (Amendment) Regulations 2024 came into effect on April 1, aiming to enhance the country’s ability to detect and prevent the misuse of its financial system for terrorist activities.

Key Changes

  • The definition of “expenditure required to meet the basic needs” has been expanded to include:
    • Payments for foodstuffs
    • Rent or mortgage
    • Medicines and medical treatment
    • Taxes
    • Insurance premiums
    • Public utility charges
    • Reasonable professional fees

This change aims to provide a clearer understanding of what constitutes legitimate expenses.

New Part 11: Financial Intelligence Unit (FIU)

  • The regulations introduce a new Part 11, which establishes the FIU as the contact point for exchanging information with:
    • United Nations Security Council (UNSC) or its committees
    • Coordinating information required to be submitted to the UNSC or its committees
    • Receiving information from them relating to UNSCR 1267, 1373, or any other UNSC resolution

Amendments to Existing Provisions

  • Frozen or seized funds, property, or assets are now exempt from freezing or seizing under any law or UN resolutions on combating terrorist acts, terrorism, or proliferation financing.

Changes to Schedules

  • The regulations make changes to the schedules, including amendments to:
    • Form 1
    • Form 2
    • Form 3
    • Form 4

These changes aim to improve the clarity and effectiveness of the regulations in preventing the misuse of Nauru’s financial system for illicit activities.

Conclusion

The introduction of these new regulations demonstrates Nauru’s commitment to combating terrorism and proliferation financing, as well as its efforts to comply with international obligations and standards. The country’s anti-money laundering and counter-terrorism financing framework is now even more robust, providing a safer environment for businesses and individuals operating within the financial system.