Financial Crime World

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Samoa Takes a Lead in Fight Against Money Laundering with New Anti-Money Laundering Legislation

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Samoa has made significant progress in combating money laundering by introducing new anti-money laundering legislation, which comes into effect on June 14th. This move reflects the country’s commitment to strengthening its financial supervision and complying with international standards.

Background

The new legislation is based on the Commonwealth model and aims to prevent money laundering fairly without imposing an undue administrative or financial burden on government or financial institutions. It incorporates the benchmark Forty Recommendations of the Financial Action Task Force (FATF) on Money Laundering, making Samoa one of the first Pacific Island nations to adopt this model.

Key Provisions

The Act defines key terms such as:

  • “Money laundering”
  • “Proceeds of crime”
  • “Identification record”
  • “Competent authority”

It also sets up a Money Laundering Authority within the Central Bank of Samoa, responsible for: + Receiving reports of suspicious transactions + Investigating money laundering cases + Enforcing penalties on those found guilty

The Act covers all financial institutions, including:

  • Offshore banking business services
  • Insurance businesses
  • Trust companies
  • Accountants
  • Solicitors
  • Money transmission services

These institutions are required to: + Implement “know your customer” principles + Maintain business transaction records + Develop policies to combat money laundering + Comply with guidelines issued by the Money Laundering Authority

Impact and Significance

Samoa’s anti-money laundering legislation is a defining moment for the country, demonstrating its commitment to combating transnational crime and strengthening cooperation in the region. The Act:

  • Overrides secrecy obligations in any enactment if there is a money laundering investigation
  • Introduces currency reporting at the border
  • Provides for mutual assistance in relation to money laundering investigations

Awareness and Training

The newly created Money Laundering Authority has hosted a public seminar to raise awareness of the financial community regarding the rationale of the Act and their statutory obligations. Further guidelines are being considered, including those on “know your customer” rules for financial institutions.

International Cooperation

Samoa’s commitment to combating money laundering is evident in its:

  • Endorsement of the United Nations Programme Against Money Laundering prior to September 2000
  • Membership of the Asia Pacific Group (APG) on Money Laundering in June 2000
  • Recent welcome to be evaluated by the Offshore Group of Banking Supervisors, viewing such evaluations as a valuable opportunity to obtain an independent assessment of the performance of regulators in the financial sector.

Conclusion

The reputation of Samoa as a responsible jurisdiction is seen as crucial. The need to continually review its operations in light of internationally recognized standards is paramount.