Financial Crime World

Samoa’s Financial Crimes Crusade: AML/CTF Strategy 2016-2020

Samoa, the scenic Pacific Island nation, has taken a decisive step towards enhancing its financial crime prevention efforts. In 2016, Samoa released its Anti-Money Laundering and Counter Terrorist Financing (AML/CTF) National Strategy 2016-2020, making it a leading Pacific Island Nation in the practical application of international AML/CTF standards.

The Role of FIU and MLPA

Two key organizations, the Financial Intelligence Unit (FIU) and the Money Laundering Prevention Authority (MLPA), have been designated to implement this strategy. Their mission is to effectively detect, deter, disrupt, and prevent money laundering and terrorist financing in Samoa. This will contribute to a stable and safe financial, social, economic, and political environment.

The Four Priority Areas

The AML/CTF system requires the following elements to be effective in reducing the harm caused by financial crimes:

  1. Appropriate laws
  2. Motivated and sufficiently resourced authorities
  3. An engaged private sector

Samoa’s strategy focuses on the following priority areas:

  • Enhancing the quality of information
  • Improving legislation
  • Engaging the private sector
  • Expanding the dissemination from the FIU

Enhancing Information and Intelligence

Samoa faces several intelligence gaps, including:

  • A lack of quantification of the value of domestic and foreign proceeds of crime
  • The extent and methods of laundering through Money Transfer Operators (MTOs) and other sectors

The strategy outlines the need to:

  1. Identify and address these gaps
  2. Establish processes to collect and analyze intelligence regularly
  3. Strengthen procedures for reporting Suspicious Transaction Reports (STRs)

Addressing Risks in the Financial System

The strategy aims to reduce the risks posed by:

  • Commercial banks
  • Money Transfer Operators (MTOs)

Through measures such as:

  • Improved reporting
  • Targeted reviews of procedures
  • Education
  • Intelligence-driven targeted sanctions for non-compliance

Making Samoa Unattractive to IOCGs

The strengthened framework will include measures to make Samoa less attractive to international organized crime groups (IOCGs) by making it difficult for them to abuse the financial system. These efforts will include:

  1. Engaging law enforcement partners
  2. Improving procedures for reporting and investigating IOCG activities
  3. Sharing intelligence on risks and potential threats

Creating an Inhospitable Financial Environment

By implementing this comprehensive AML/CTF strategy, Samoa aspires to create a financial environment that is inhospitable to money laundering, terrorist financing, and other financial crimes. This will not only support the country’s economic development but will contribute to a safer and more stable region.