Samoa’s Financial Intelligence Unit Combats Money Laundering and Terrorism Financing
The Financial Intelligence Unit (FIU) of Samoa has been working tirelessly to prevent money laundering and terrorism financing in the country. In recent times, the FIU has received numerous requests from other government ministries for due diligence checks or background checks on individuals or companies.
Request for Due Diligence Checks
According to a recent report, the FIU received 20 requests from other government ministries for due diligence checks or background checks on individuals or companies. This highlights the importance of the FIU’s role in ensuring that financial transactions are legitimate and not linked to serious offenses such as money laundering and terrorism financing.
Dissemination of Intelligence Reports
During the reviewed period, the FIU disseminated nine intelligence assessment reports to law enforcement agencies, including the Police and Customs and Revenue Ministry. These reports primarily related to predicate offenses such as forgery and fraud, and other criminal cases. The information provided in these reports aided in investigations and action, demonstrating the effectiveness of the FIU’s work.
Cooperation with Foreign Financial Intelligence Units
The FIU also received three requests for information from foreign Financial Intelligence Units (FIUs) via the Egmont Group, seeking information on offshore companies registered in Samoa and individuals of interest. In addition, the FIU made two requests to foreign FIUs for information to assist with police investigations and law enforcement agency requests.
Due Diligence and Background Checks
The FIU conducts due diligence and background checks for financial institutions, competent authorities, and internal departments of the Central Bank of Samoa (CBS). The purpose of these checks is to verify the legitimacy of companies or individuals and identify potential links to serious offenses, including money laundering and terrorism financing.
Supervision of Financial Institutions
The FIU supervises financial institutions through regular on-site examinations to ensure compliance with the Money Laundering Prevention Act. Guidelines are issued to assist financial institutions in understanding their obligations under the law. The unit cooperates with law enforcement agencies, both domestic and foreign, in investigations, prosecutions, or proceedings related to serious offenses.
Entities Required to Comply
Entities required to comply with the Money Laundering Prevention Act include:
- Commercial banks
- Money transfer operators
- Trust or company service providers
- Lawyers
- Accountants
- Casinos
- Insurance businesses
- Credit unions
- Real estate agents
- Virtual currency exchanges
- Non-profit organizations
On-Site Examinations of Money Transfer Operators
The FIU conducted an onsite examination of 9 out of 11 money transfer operators between March and April 2020. The inspection revealed a significant improvement in the implementation of anti-money laundering and combating the financing of terrorism (AML/CFT) programs since the last visit in 2018.
Regular Meetings with Financial Institutions
Regular meetings are also held with financial institutions’ compliance officers to provide updates, share ideas, and address challenges related to AML/CFT matters.
Collaboration with International Bodies
The FIU collaborates with various bodies and partners, including the Asia-Pacific Group on Money Laundering (APG), to implement FATF standards and exchange information and intelligence in combating money laundering and terrorism financing.