Financial Crime World

International Organised Crime Groups Target Samoa as Transit Point for Illegal Activities

Samoa, known for its picturesque islands and tourist attractions, has also become an attractive destination for international organised crime groups (IOCGs). The country’s geographic location, stable economy, low levels of violent crime, and advanced banking system make it an ideal hub for criminal activity.

Lax Regulation Makes Samoa an Attractive Destination

According to a recent report by the Asia-Pacific Group on Money Laundering (APG) and the Financial Action Task Force (FATF), Samoa lacks effective measures to prevent money laundering and terrorist financing. The country’s financial system allows IOCGs to move goods and money with ease, making it an attractive destination for criminal activity.

Factors Contributing to Samoa’s Attractiveness

The report highlights several factors that contribute to Samoa’s attractiveness to IOCGs, including:

  • Its reputation as a secrecy haven
  • Low capacity law enforcement
  • Lack of effective anti-money laundering (AML) and counter-terrorist financing (CFT) measures

Steps Being Taken by the Samoan Authorities

However, the Samoan authorities are taking steps to address these concerns. The country has committed to implementing an effective AML/CFT system to reduce its attractiveness to IOCGs. This includes:

  • Engaging with international partners to identify sources of intelligence
  • Working to reduce the country’s reputation as a secrecy haven

Action Items

The Samoan authorities will:

  • Commence engagement through the Transnational Crime Unit (TCU) and other sources on the nature and extent of IOCGs in operation in Samoa
  • Formulate steps to reduce the attractiveness of Samoa as a place for IOCGs to do business

Recommendations for Improving AML/CFT System

The report also highlights several recommendations for improving Samoa’s AML/CFT system, including:

  • Conducting a comprehensive risk assessment to identify high-risk areas and implement measures to mitigate these risks
  • Implementing a risk-based approach to allocating resources and implementing measures to prevent or mitigate money laundering/terrorist financing (ML/TF)
  • Strengthening the legal framework to support targeted financial sanctions (TFS) relating to terrorism and weapons proliferation financing
  • Amending existing legislation to address technical deficiencies

Legislative Improvements

The Samoan authorities will commence a process to document the legislative improvements required and pursue a process of legislative amendments. This includes amending the:

  • International Companies Act 1988
  • Trusts Act 2014
  • Companies Act 2001
  • MLP Act 2007
  • MLP Regulations 2009

Conclusion

In conclusion, Samoa’s attractiveness to IOCGs is a major concern for the country’s authorities and international partners. However, by implementing an effective AML/CFT system and strengthening its legal framework, Samoa can reduce its vulnerability to illegal activities and become a less attractive destination for criminal activity.