Financial Crime World

American Samoa Adopts Risk-Based Approach to Combat Money Laundering and Terrorist Financing

In a significant move to strengthen its anti-money laundering (AML) and combating the financing of terrorism (CFT) regime, American Samoa has adopted a risk-based approach to tackle these threats. This development is part of the country’s efforts to meet the international standards set by the Financial Action Task Force (FATF).

Assessment Highlights Progress

According to a recent assessment, American Samoa has made significant progress in implementing the technical requirements of the FATF Recommendations. While some areas require improvement, the overall outcome is encouraging.

Key Areas of Focus

  • Risk Assessment: The country’s authorities have established a robust system to identify and mitigate the risks associated with money laundering and terrorist financing.
  • National Cooperation and Coordination: American Samoa has made strides in ensuring that all relevant agencies are working together effectively to combat these threats.

Compliance Strengths

The report highlights several areas where American Samoa has demonstrated strong compliance, including:

  • Laws and Regulations: The country’s laws and regulations related to money laundering and terrorist financing are in place.
  • Financial Institutions: Financial institutions have implemented effective measures to prevent the misuse of their services for illicit activities.

Areas Requiring Improvement

However, there are still some areas that require improvement, such as:

  • Regulation and Supervision: The regulation and supervision of financial institutions and designated non-financial businesses and professions (DNFBPs) need to be strengthened.
  • AML/CFT Framework: American Samoa is working towards addressing these gaps to ensure a comprehensive AML/CFT framework.

Significance of the Risk-Based Approach

The adoption of a risk-based approach in American Samoa is seen as a significant step forward in the country’s efforts to combat money laundering and terrorist financing. The implementation of this approach will enable the country’s authorities to target their resources more effectively, reducing the risks associated with these threats.

Conclusion

Overall, the assessment highlights American Samoa’s commitment to implementing effective AML/CFT measures, and its willingness to work towards meeting international standards.