Financial Crime World

SAMOA TAKES A STAND AGAINST MONEY LAUNDERING WITH NEW LEGISLATION

Strengthening Anti-Money Laundering Regime

The government of American Samoa has introduced new legislation to combat money laundering and uphold international standards. The Money Laundering Prevention Act 2000 came into effect on June 14, 2000, based on the Commonwealth model.

Definition and Penalties

The Act defines “money laundering” as engaging in any transaction that involves property which is the proceeds of crime, or having reasonable grounds for believing that the property represents the proceeds of crime. The penalties for a person guilty of money laundering include:

  • Imprisonment for a maximum period of seven years
  • A fine not exceeding $300,000

Key Features of the Act

The Act includes several key features aimed at preventing and combating money laundering:

  • Mandatory obligations on financial institutions: “Know your customer” principles, record-keeping requirements, and compliance with guidelines issued by the Money Laundering Authority
  • Money Laundering Authority: a body within the Central Bank of American Samoa responsible for receiving reports of suspicious transactions and considering them for investigation by the competent authority
  • Currency reporting at the border: anyone leaving American Samoa with more than $3,000 in cash or negotiable bearer instruments must declare the fact to the Money Laundering Authority

International Cooperation and Commitment

American Samoa has demonstrated its commitment to combating money laundering by:

  • Endorsing the United Nations Programme Against Money Laundering
  • Joining the Asia-Pacific Group on Money Laundering
  • Welcoming evaluations from the Offshore Group of Banking Supervisors, viewing them as a valuable opportunity to obtain an independent assessment of the performance of regulators in the financial sector.