Financial Crime World

International Organized Crime Groups See Samoa as Attractive Transit Point

Concerns Raised about Samoa’s Vulnerability to Money Laundering and Terrorism Financing

A recent report has highlighted concerns that international organized crime groups (IOCGs) are being drawn to Samoa due to its strategic location, stable economy, and lack of stringent anti-money laundering and combating the financing of terrorism (AML/CFT) regulations.

Attractive Destination for IOCGs

The report notes that IOCGs are attracted to Samoa’s reputation as a secrecy haven with low capacity law enforcement, making it an ideal transit point for their illegal activities. The groups require a financial system that allows them to move goods and money undetected, and Samoa’s advanced banking system makes it an attractive destination.

Urgent Need for Strengthened AML/CFT System

To combat this issue, Samoan authorities have recognized the need to strengthen their AML/CFT system and reduce the country’s attractiveness to IOCGs. This includes improving intelligence gathering on the activities of these groups and formulating steps to make Samoa a less appealing place for them to operate.

Current Challenges in AML/CFT Framework

However, experts warn that Samoa’s current AML/CFT framework is inadequate, with many areas requiring improvement. The report notes that:

  • The country lacks legislation supporting targeted financial sanctions (TFS) related to terrorism and weapons proliferation financing.
  • Technical deficiencies need to be addressed in several key pieces of legislation.
  • There is a lack of proportionate and dissuasive sanctions applicable to financial institutions and designated non-financial businesses and professions.

Commitment to Improving AML/CFT System

To address these issues, Samoan authorities have committed to implementing a comprehensive, risk-based approach to AML/CFT, improving intelligence gathering, and strengthening the country’s legal framework. This includes amending key pieces of legislation to improve the robustness of the AML/CFT system.

Conclusion

The report concludes that addressing these concerns is crucial to reducing Samoa’s attractiveness to IOCGs and preventing the country from being used as a hub for illegal activities. It is essential that Samoan authorities take immediate action to strengthen their AML/CFT system and reduce the country’s vulnerability to money laundering and terrorism financing.