Financial Crime World

Samoa’s Battle Against Money Laundering and Terrorist Financing: Non-Profit Organizations Take the Frontline

On May 13, 2009, in Apia, Mr. Papali’I T Scanlan, Governor of the Central Bank of Samoa, led a groundbreaking workshop for Non-Profit Organizations (NPOs) to increase awareness and understanding of their pivotal role in the fight against money laundering and terrorist financing.

Importance of the Workshop

Scanlan expressed gratitude for NPO attendance and emphasized the day’s objectives:

“The main objective of this workshop is to promote and enhance your individual Organization’s awareness and understanding of the important aspects involved in fighting the offenses of money laundering and the financing of terrorism in Samoa.”

The event marked the inception of a larger “Awareness Raising Program” following the identification of key entities by the Central Bank of Samoa and the Ministry of Commerce, Industry and Labor (MCIL).

Vulnerability of the NPO Sector

Scanlan acknowledged the NPO sector’s vulnerability to money laundering and terrorist financing, citing weak management structures and regulatory gaps in various jurisdictions. He raised questions essential for understanding NPO activities and their potential risks:

  • What is an NPO sector?
  • How many NPOs are in operation?
  • What types of NPOs exist (religious, cultural, educational, sports)?
  • What activities do they perform?
  • Are there registration requirements and record-keeping requirements?
  • Are there reporting requirements?
  • Are there mechanisms to verify funds are spent as advertised?

Scanlan acknowledged the challenges in addressing these issues and the practical implications of regulating the sector.

Global Concerns and International Efforts

Scanlan expressed Samoa’s commitment to FATF’s Forty and Nine Special Recommendations to combat money laundering and terrorist financing as a member of the Asia/Pacific Group on Money Laundering (APG). He also warned against get-rich-quick operators who scam governments and individuals and urged sharing information to protect the financial system and people from such abuses.

Building Local Capacity

Scanlan stressed the importance of building local capacity to effectively combat money laundering and terrorist financing:

“We need a collaborative approach to work together to protect Samoa from these challenges that could damage the image and reputation of our financial system and the good standing of NPOs in the country.”