Title: Samoa Caught in the Crossfire of Global Money Laundering Regulations: A Balancing Act

Author and Affiliation

Mark Rowe, Cambridge University, UK

Overview

Small Island Developing States (SIDS), including Samoa, face unique challenges in implementing global money laundering regulations. In this article, Mark Rowe discusses Samoa’s experiences and provides insights for policymakers from other developing nations.

The Challenges of Balancing Compliance and Development Priorities

SIDS, such as Samoa, are torn between the risks of being non-compliant and the significant regulatory opportunity costs of meeting complex global norms.
These nations must adopt expensive anti-money laundering and counter-terrorism financing (AML-CFT) measures to avoid being labeled high-risk jurisdictions.
Policymakers need to be more sensitive to the unique needs and limited regulatory capacity of small jurisdictions.

Findings

Samoa and other SIDS confront an expensive form of ‘window-dressing’ in their efforts to adhere to global AML-CFT rules.
Further research is required to explore how offshore centers contribute to the regulatory complexity and risk profile of SIDS.

Key Insights

The study, “A difficult balancing act: the Samoan experience with money laundering regulation,” contributes to the academic discourse on money laundering regulation in the South Pacific and discusses the following findings:

The challenges faced by Samoa and other SIDS in balancing compliance and development priorities.
The importance of recognizing the unique challenges faced by small nations in implementing global regulations.

Implications

The implications of this research extend beyond Samoa and provide essential insights for developing countries grappling with global regulatory demands, financial inclusion, and economic development.

Keywords

Money laundering
Samoa
SIDS
Derisking
Pacific Islands
Small Island Developing State

Citation

Rowe, M. (2021). A difficult balancing act: the Samoan experience with money laundering regulation. Journal of Money Laundering Control, 24(3), 502-513. https://doi.org/10.1108/JMLC-08-2020-0096