Financial Crime World

SAMOA’s Financial Crime Law Enforcement in the Spotlight: A Review of the Mutual Evaluation 2015

The Financial Action Task Force (FATF) has released its Mutual Evaluation report for Samoa, assessing the country’s progress in implementing anti-money laundering and combating financing of terrorism (AML/CFT) measures. The report provides a comprehensive overview of Samoa’s financial crime law enforcement framework, highlighting areas of strength and weakness.

Assessment of Technical Requirements

According to the report, Samoa has made significant strides in implementing the technical requirements of the FATF Recommendations. However, there are still several areas that require improvement.

Risk Assessment and Application

  • Samoa is considered partially compliant (PC) in assessing risk and applying a risk-based approach.
  • The country has established a risk assessment framework, but it needs to improve its ability to identify and assess risks related to money laundering and terrorist financing.

National Cooperation and Coordination Mechanisms

  • Samoa’s national cooperation and coordination mechanisms are also seen as partially compliant (PC).
  • While the country has established a National Coordination Committee, it lacks a clear structure and process for coordinating efforts between different agencies and stakeholders.

Areas of Concern

The report highlights several areas of concern, including:

Absence of Comprehensive Law

  • Samoa is considered non-compliant (NC) in terms of confiscation and provisional measures, as its laws do not provide adequate powers to seize assets linked to criminal activities.
  • There is no comprehensive law on money laundering and terrorist financing.

Financial Institution Secrecy Laws

  • Samoa’s financial institution secrecy laws are seen as compliant (C), but there are concerns that they may be exploited by criminals.
  • The country’s customer due diligence requirements are also considered partially compliant, with many financial institutions lacking adequate procedures for identifying and verifying customers.

Recommendations

The report recommends that Samoa:

Strengthen Internal Controls

  • Improve internal controls and foreign branches and subsidiaries.
  • Enhance regulation and supervision of financial institutions.

Increase Cooperation

  • Encourage greater cooperation between law enforcement agencies and the financial sector to combat money laundering and terrorist financing.

Conclusion

While Samoa has made progress in implementing AML/CFT measures, there are still several areas that require improvement. The country must work to address these weaknesses and strengthen its financial crime law enforcement framework if it is to meet its international obligations.