American Samoa’s Anti-Money Laundering Regulations Under Scrutiny

A recent evaluation of American Samoa’s anti-money laundering (AML) regulations has revealed a mixed bag of compliance with international standards. The report, which assesses the country’s implementation of technical requirements outlined by the Financial Action Task Force (FATF), highlights both strengths and weaknesses in its AML regime.

Progress Made

American Samoa has made significant progress in several areas, including:

• Assessing risk and applying a risk-based approach
• National cooperation and coordination
• Targeted financial sanctions related to terrorism and terrorist financing
• Compliance with requirements related to customer due diligence, record keeping, and internal controls

Weaknesses Identified

However, the report highlights several areas where American Samoa falls short of international standards:

• Failure to effectively confiscate and provisionally seize assets
• Lack of transparency in beneficial ownership of legal persons and arrangements
• Inadequate regulation and supervision of financial institutions and designated non-financial businesses and professions (DNFBPs)

Ongoing Challenges

The evaluation also notes that American Samoa has not fully implemented measures to prevent money laundering and terrorist financing through new technologies such as cryptocurrencies. Additionally, the country’s powers of supervisors and law enforcement authorities are limited, and its mutual legal assistance agreements with other countries require improvement.

Conclusion

While American Samoa has made significant strides in implementing AML regulations, it still has work to do to bring its regime fully into line with international standards. The country must prioritize addressing these shortcomings if it is to effectively combat money laundering and terrorist financing.