Financial Crime World

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Counter-Terrorism and Transnational Organised Crime Act 2004: New Regulations to Combat Financial Crimes

In a bid to strengthen its efforts against financial crimes, the Nauru government has introduced new regulations under the Counter-terrorist and Transnational Organized Crime Act 2004. The Anti-Money Laundering and Targeted Financial Sanctions (Financing of Terrorism and Proliferation Financing) Regulations 2023 aim to combat financial crimes associated with predicate offenses.

Predicate Offenses Require Parallel Financial Investigation

Under the new regulations, law enforcement agencies in Nauru are required to carry out parallel financial investigations when investigating predicate offenses. These predicate offenses include:

  • Participation in an organized criminal group
  • Racketeering
  • Terrorism
  • Human trafficking
  • Sexual exploitation
  • Fraud
  • Other serious crimes

Financial Crime Linked to Predicate Offenses

The regulations also require reporting entities and law enforcement agencies to refer information and relevant material to the Nauru Police Force if they suspect a predicate offense is being committed in connection with a financial crime. This includes:

  • Suspicious activity reports
  • Transportation of border currency reports
  • Other matters involving financial crime

FIU Obligations

The Financial Intelligence Unit (FIU) has a critical role to play in identifying and reporting suspected financial crimes and predicate offenses. The FIU must:

  • Analyze findings
  • Refer them to the Nauru Police Force or law enforcement agencies
    • Suspicious activity reports
    • Transportation of border currency reports
    • Other matters involving financial crime

Director of Public Prosecution’s Powers

The Director of Public Prosecution has the power to direct parallel financial investigations where a financial crime is suspected to have been committed in connection with a predicate offense. This power aims to ensure that financial crimes are thoroughly investigated and prosecuted.

Implementation Responsibilities

The implementation of these regulations rests with various authorities, including:

  • Nauru Police Force
  • FIU
  • Director of Public Prosecution
  • Nauru Revenue Office
  • Nauru Customs Service
  • Reporting entities
  • Other law enforcement agencies

These authorities must coordinate their functions and powers to expedite the identification, tracing, and freezing of criminal property.

Controlled Delivery

The regulations also allow for controlled delivery of criminal property in certain circumstances. This includes:

  • Allowing criminals to transport or convey criminal property, including cash, into or out of Nauru
    • With the aim of tracing and seizing the proceeds of crime

Information Sharing

All authorities involved must share information in a confidential manner without prejudicing ongoing investigations or prosecutions.

Record Keeping

Finally, all information, evidence, and material obtained during an investigation must be preserved for a period of 7 years to ensure that financial crimes can be thoroughly investigated and prosecuted.