Financial Crime World

Samoa’s Attractiveness to Organised Crime Groups Raises Concerns

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Samoa, a Pacific island nation, has become an attractive transit point for international organised crime groups (IOCGs) due to its strategic location, stable economy, low levels of violent crime, and advanced banking system. This has raised concerns among experts who believe that IOCGs need a country with a financial system that allows them to move goods and money without being detected.

Why Samoa is an Attractive Target

  • Samoa’s reputation as a secrecy haven
  • Limited law enforcement capacity
  • Advanced banking system
  • Strategic location

Experts’ Concerns

IOCGs seek countries with a financial system that can facilitate illegal activities. Samoa’s deficiencies in its Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) regime have contributed to its attractiveness.

Addressing the Concerns

To reduce the attractiveness of Samoa to IOCGs, authorities are implementing an effective AML/CFT system. The following measures are being taken:

Action Items

  • Commence engagement with the Transnational Crime Unit (TCU) and other sources to identify the nature and extent of IOCGs in operation in Samoa
  • Formulate steps to reduce the attractiveness of Samoa as a place for IOCGs to do business
  • Undertake a process to ensure that the next Money Laundering Risk Assessment (MLRA) considers in-depth the types or volume of threats associated with predicate offences
  • Provide feedback on findings from MLRAs to financial institutions (FIs) and designated non-financial businesses and professions (DNFBPs)
  • Implement a comprehensive, risk-based approach to allocating resources and implementing measures to prevent or mitigate money laundering/terrorist financing

The report also identified several areas where Samoa’s legislation can be tightened to improve the robustness of its AML/CFT system. These include:

Action Items

  • Commence a process to document legislative improvements required
  • Pursue a process of legislative reform to address technical deficiencies
  • Strengthen targeted financial sanctions (TFS) relating to terrorism and weapons proliferation financing
  • Amend various acts to address technical deficiencies

Conclusion

The implementation of these measures is crucial in reducing the attractiveness of Samoa to IOCGs and ensuring the country’s AML/CFT regime is effective in preventing illegal activities. By strengthening its legal framework and implementing an effective AML/CFT system, Samoa can reduce its vulnerability to organized crime groups and maintain a stable economy.