Financial Crime World

Nauru Unveils Comprehensive Strategy to Combat Money Laundering and Terrorism Financing

The Republic of Nauru has launched a five-pillar strategy to combat money laundering (AML) and combating the financing of terrorism (CFT), aimed at mitigating the country’s AML/CFT risks.

Key Objectives

According to the National Strategy for Anti-Money Laundering and Combatting the Financing of Terrorism 2022-2025, the country will focus on:

  • Developing skills and capacity within law enforcement agencies
  • Promoting inter-agency training on AML/CFT issues
  • Encouraging online self-paced training offered by international organizations without cost

Data Collection Mechanisms

The strategy emphasizes the importance of data collection mechanisms, urging sectors to improve their collection and sharing of statistical information on AML/CFT activities. To achieve this:

  • The Financial Intelligence Unit (FIU) will conduct awareness programs with the Anti-Money Laundering Committees on the obligation of recording and collecting statistical information on AML/CFT activities
  • The FIU will develop a template with guidelines for collecting statistical information and establish a periodic collection process every three to six months
  • Technology will be explored as an option for improving data collection, sharing, and storage

Monitoring and Assessment

To monitor and assess the effectiveness of this strategy:

  • The FIU will report progress on an annual basis to the Council
  • Success depends on a collaborative effort from all key stakeholders

Five-Pillar Strategy

The five-pillar strategy aims to prevent, deter, detect, and disrupt AML/CFT contravening activities by:

  1. Legislative Drafting Project: Completion of the legislative drafting project by September 2025
  2. Training and Capacity Building: Promoting inter-agency training and online self-paced training
  3. Data Collection Mechanisms: Improving data collection mechanisms
  4. Cooperation and Coordination: Enhancing cooperation and coordination between relevant authorities
  5. Risk-Based Measures: Implementing risk-based measures to ensure effective allocation of resources

FATF Endorsement

The strategy has been endorsed by the Financial Action Task Force (FATF), a global standard-setting body that sets standards for combating money laundering, terrorist financing, and proliferation financing.

Quote from Head of FIU

“The National Strategy for Anti-Money Laundering and Combatting the Financing of Terrorism 2022-2025 demonstrates Nauru’s commitment to combatting AML/CFT risks and ensuring a safe and secure financial system,” said [Name], Head of the Financial Intelligence Unit. “We are confident that this strategy will help us achieve our goals and maintain our country’s reputation as a responsible member of the international community.”