Financial Crime World

Financial Sanctions Enforcement in Samoa Falls Short, Says Report

The Financial Action Task Force (FATF) has released a report highlighting Samoa’s shortcomings in implementing anti-money laundering and counter-terrorism financing measures. The country received ratings of partially compliant or largely compliant on 38 out of 40 recommendations.

Progress Made, But More Work Needed

While Samoa has made progress in implementing some technical requirements, such as assessing risk and applying a risk-based approach (R.1) and requiring financial institutions to maintain accurate records (R.11), there is still much work to be done.

Specific Areas of Improvement

  • Terrorist Financing Offence (R.5): Samoa was found to be partially compliant, indicating that it has not fully implemented measures to combat terrorist financing.
  • Money Laundering Offence (R.3): The country was also partially compliant with this recommendation, showing that it has not fully implemented measures to prevent money laundering.
  • Internal Controls and Foreign Branches and Subsidiaries (R.18): While Samoa was largely compliant with this recommendation, it still needs to improve its oversight of these entities.

Areas for Improvement

  • Confiscation and Provisional Measures (R.4)
  • Targeted Financial Sanctions related to Terrorism and Terrorist Financing (R.6)
  • International Cooperation in Freezing and Confiscation (R.38)

Challenges Facing Samoa’s Financial Sector

Samoa’s financial sector has faced several challenges in recent years, including concerns over money laundering and terrorist financing. While the country has implemented some measures to address these issues, more work is needed to bring its laws and regulations into line with international standards.

Roadmap for Improvement

The FATF report provides a roadmap for Samoa to improve its financial sanctions enforcement and prevent the misuse of its financial system for illicit activities. To achieve this, the government will need to take concrete steps to address the weaknesses identified in the report and ensure that its financial sector is transparent, accountable, and effective in preventing money laundering and terrorist financing.

In summary, while Samoa has made progress in implementing some anti-money laundering and counter-terrorism financing measures, there is still much work to be done to bring its laws and regulations into line with international standards. The government must take concrete steps to address the weaknesses identified in the report to ensure a transparent, accountable, and effective financial sector.