Financial Crime World

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Drug Cases on the Rise: Nauru Fiu Works to Stay Ahead of the Curve

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In a worrying trend, drug cases are on the increase in Nauru and surrounding regions, prompting the Financial Intelligence Unit (FIU) to take proactive measures to combat the problem.

According to intelligence reports, the rise in drug-related offenses poses a significant threat to national security and public health. To mitigate these risks, the FIU has implemented strict internal controls and collaborated with supervisory authorities and law enforcement agencies to identify specific vulnerabilities and develop strategies to address them.

Virtual Assets: A New Frontier in the Fight Against Money Laundering

The FIU has also turned its attention to virtual assets (VA) and virtual asset service providers (VASP), which have become increasingly popular in the region. Nauru has introduced a VASP Policy to regulate these entities, which pose significant risks of money laundering, terrorism financing, and proliferation financing.

Under the policy, any VASP intending to operate in Nauru must comply with local laws and regulations, including the Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) Act 2023. Currently, no VASPs have been identified as operational in Nauru.

Coordination Key to Success

The FIU works closely with supervisory authorities, law enforcement agencies, and other stakeholders to identify risks and vulnerabilities and develop strategies to mitigate them. The agency has introduced a National Strategy for Anti-Money Laundering and Combating the Financing of Terrorism 2022-2025, which sets out specific goals and objectives.

Key Components of the National Strategy

  • Establish three committees: AML Governance Committee, AML Officials Committee, and Private Partners Committee
  • Share information among stakeholders to identify risks and develop mitigating strategies

Case Study: FIU Disseminates Information to Nauru Police Force

In a recent case study, the FIU disseminated information to the Nauru Police Force related to alleged forgery at the Passport office. The incident involved an unemployed Nauruan national who attempted to avoid payment for the renewal of two passports.

Nauru’s Approach to Combating Crimes

The FIU’s approach to combating crimes is centered on collaboration and information sharing. The agency works closely with all stakeholders to identify crime trends and patterns, share findings, and develop strategies to address threats and vulnerabilities.

Quote from Secretary for Justice and Border Control

“The FIU’s efforts in combatting money laundering and terrorism financing are essential to protecting Nauru’s financial system and national security.”