Financial Crime World

Samoa Strengthens Anti-Money Laundering Regime: A Global Initiative and Samoan Response

Samoa, a Pacific Island nation, is taking decisive steps to fortify its anti-money laundering (AML) regime in response to global initiatives and self-interest. This article outlines Samoa’s efforts to enhance its AML measures and comply with international standards.

Global Initiatives: FSF and FATF

  • The Financial Stability Forum (FSF) and the Financial Action Task Force (FATF) are among the global bodies promoting best practices in financial supervision and anti-money laundering measures, respectively.
  • These initiatives aim to foster transparency and efficiency in financial systems worldwide.

Samoan Response: Review and Amendments

  • In 1996, the Samoan government, in collaboration with the Commonwealth Secretariat, conducted a comprehensive review of offshore laws.
    • resulted in substantial amendments to the Offshore Banking and International Insurance Acts in 1998;
    • introduced gateway provisions, regulator-to-regulator disclosure, and stricter controls on banking and insurance license holders.

Key Legislation: Money Laundering Prevention Act 2000

  • Significant legislation resulting from the 1996 review is the Money Laundering Prevention Act 2000.
    • Based on the Commonwealth model, aiming to prevent money laundering without imposing an undue burden;
    • Compliant with international standards, incorporating the FATF Forty Recommendations and the Honiara Declaration.

Offenses and Penalties

  • Money laundering is defined as engaging in transactions involving proceeds of crime or having reasonable grounds for believing that the property represents proceeds of crime.
  • Offenders face imprisonment for up to seven years and/or a fine of up to SAT 1,000,000 ($300,000).

Establishment of Money Laundering Authority

  • The new regime establishes a Money Laundering Authority within the Central Bank of Samoa, responsible for handling suspicious transaction reports and investigations.

Additional Measures

  • Currency reporting at the border, mutual assistance in relation to money laundering, and overriding secrecy obligations during money laundering investigations.

Reinforcing Samoa’s Reputation

  • These measures demonstrate Samoa’s commitment to combating money laundering and reaffirm its reputation as a responsible jurisdiction within the global community and international organizations.