Financial Crime World

Title: Samoa’s Crackdown on Money Laundering: New Legislation and Global Initiatives

History of Samoa’s Anti-Money Laundering Regime

  • Established in 2000 as a key player in the Pacific
  • Thorough review of laws with the assistance of the Commonwealth Secretariat in 1996
  • Response to international initiatives like the Financial Stability Forum (FSF) and the Financial Action Task Force (FATF)

significant Changes to Samoa’s Legislation

  • Updated Offshore Banking and International Insurance Acts in 1998
  • Created the Money Laundering Prevention Act

The Money Laundering Prevention Act

  • Based on the Commonwealth model
  • Adheres to internationally recognized standards such as the Forty Recommendations of the FATF and the 1992 Honiara Declaration

Key definitions and Offenses

  • Defines key terms like “money laundering” and “proceeds of crime”
  • Penalizes individuals for transactions involving ill-gotten gains or reasonable suspicion of criminal activity

Key Characteristics

  1. Coverage: Covers various financial institutions such as offshore banking services, insurance transactions, and trust companies.
  2. Money Laundering Authority: Sets up a Money Laundering Authority within the Central Bank of Samoa to gather and investigate suspicious transactions.
  3. Obligations on Financial Institutions: Imposes obligations on financial institutions, including maintaining records and adhering to “know your customer” guidelines.
  4. Investigations and Reporting: Overrides secrecy obligations during investigations and includes provisions for currency reporting, mutual assistance, and asset sharing.
  5. Fugitives and Extradition: Introduces measures for addressing fugitives and extradition.

Continued Commitment to combating Money Laundering

  • Considering new guidelines on “know your customer” policies
  • Hosting seminars to raise awareness about AML obligations for the financial community
  • Staying informed about international standards and collaborating with regional and global organizations to maintain a robust and effective AML regime.