Financial Crime World

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NAURU REGULATES FINANCIAL INSTITUTIONS TO COMBAT TERRORISM AND TRANSNATIONAL ORGANIZED CRIME

The government of Nauru has introduced new regulations to require financial institutions in the country to comply with international standards for combating terrorism and transnational organized crime. The Counter Terrorism and Transnational Organized Crime (Targeted Financial Sanctions) Regulations 2023, which came into effect on May 9th, aim to prevent and suppress the financing of terrorist activities and other serious crimes.

Key Provisions

  • Financial institutions are required to screen their customers against a list of designated individuals and entities that have been identified by international authorities as posing a risk to national security.
  • Institutions must report any suspicious transactions or attempts to make available property or services to designated persons or entities.
  • Financial institutions may not deal with property owned or controlled by designated persons or entities, nor may they provide financial or related services to them.

Compliance Requirements

  • Financial institutions must adopt policies and procedures for screening customers against designated individuals and entities.
  • Institutions must provide regular reports to the Financial Intelligence Unit (FIU).
  • The FIU is responsible for monitoring and enforcing compliance with the regulations.

Penalties for Non-Compliance

  • Failure to comply with the regulations will result in serious penalties, including fines of up to $50,000 for corporate entities and imprisonment terms of up to two years for individuals.
  • The government has also empowered the FIU to monitor compliance and take enforcement action as necessary.

Importance of the Regulations

The new regulations reflect Nauru’s commitment to international cooperation in combating terrorism and transnational organized crime. They are designed to ensure that financial institutions in the country do not inadvertently facilitate or support illicit activities, while also protecting the rights and interests of legitimate customers.

By implementing these regulations, Nauru is taking an important step forward in its efforts to combat terrorism and transnational organized crime, and demonstrating its commitment to working with international partners to prevent and suppress these threats.