Financial Crime World

Financial Crime Prevention a Priority for Samoa

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Money laundering, the process of concealing the true origin and ownership of criminal activity proceeds, poses significant risks to Samoa’s economic stability, financial sector reputation, and ability to prevent large-scale corruption. To combat this threat, the Central Bank of Samoa has established a robust money laundering prevention framework.

The Money Laundering Prevention Act

The country’s Money Laundering Prevention Act is administered by the Central Bank, with the Governor serving as the Money Laundering Prevention Authority. The Authority works closely with government agencies, departments, and the Financial Intelligence Unit to prevent financial crime.

Measures to Detect and Prevent Money Laundering

To detect and prevent money laundering, Samoa has implemented various measures, including:

  • Border currency report requirement: Individuals leaving or entering the country with cash or negotiable bearer instruments worth $20,000 or more are required to fill out a report.
  • Obligations for financial institutions:
    • Keeping relevant records for a minimum of five years
    • Developing clear customer acceptance policies and procedures
    • Proper identification of customers
    • Establishing systemic procedures for identifying new customers

Extra Precautions for High-Risk Transactions

Financial institutions in Samoa must also take extra precautions on transactions received or sent to jurisdictions that do not have adequate anti-money laundering systems in place. Failure to comply with these obligations can result in severe penalties, including fines up to $10,000 and five years in jail.

Implementing the Framework

To ensure effective implementation of the money laundering prevention framework, the Central Bank has established a Money Laundering Prevention Task Force, comprising senior officials from various government agencies and financial institutions. The task force provides recommendations to the Authority on issues related to money laundering or terrorist financing.

Importance of Commitment to Preventing Financial Crime

Samoa’s commitment to preventing financial crime is crucial in maintaining its reputation as a responsible member of the international community and upholding its standards of good governance.