Banking Fraud Schemes Explained in Samoa: Commercial Banks Clear of Money Laundering Risks
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Despite being listed as a tax haven by the European Union, commercial banks in Samoa have been deemed to pose “very low risk” of money laundering, according to the Central Bank of Samoa.
Onsite Inspections at Major Commercial Banks
The Financial Intelligence Unit (FIU) of CBS conducted onsite inspections at four major commercial banks:
- ANZ Bank Samoa Limited
- BSP Bank
- National Bank of Samoa
- Samoa Commercial Bank
These inspections aimed to assess the effectiveness of their anti-money laundering systems, which were found to be of a “very high standard”. The FIU’s inspection process involved:
- Scrutiny of bank records
- Interviews with staff
All four banks fully cooperated with the inspections and made significant efforts to improve their anti-money laundering and countering terrorist financing (AML/CTF) systems since the last onsite inspection in 2017.
Central Bank of Samoa Dismisses Tax Fraud Concerns
The Central Bank of Samoa has dismissed reports that Samoa is a haven for tax fraud or evasion, citing its compliance with international standards set by the Financial Action Task Force (FATF). However, a recent report by ABC exposed documents from Asiaciti, a company run by Australian businessman Graeme Briggs, which allegedly enabled wealthy foreign clients to use legal loopholes to minimize or avoid tax in Samoa.
Banking Fraud Schemes in Samoa: Mitigating Risks
Despite this controversy, CBS maintains that Samoa is not on any blacklist regarding its anti-money laundering and countering terrorist financing systems. The bank’s stance suggests that while there may be some concerns about banking fraud schemes in Samoa, the commercial banks are taking steps to mitigate these risks and ensure compliance with international standards.
In conclusion, while there may be some concerns about banking fraud schemes in Samoa, the Central Bank of Samoa has assured that the commercial banks are taking necessary measures to prevent money laundering and terrorist financing. The bank’s stance is supported by onsite inspections conducted by the Financial Intelligence Unit (FIU) which found that anti-money laundering systems are of a “very high standard”.