Financial Crime World

Samoan Authorities Urged to Strengthen Financial Regulation

A recent review by a team of financial experts has identified several areas of concern in Samoa’s anti-money laundering and combating the financing of terrorism (AML/CFT) measures, as well as its banking supervision and prudential regulation.

Concerns Identified

The mission, conducted by [Name] Financial Service Providers, found that while the Samoan authorities have made significant progress in strengthening their AML/CFT framework, there are still several areas that require attention to bring Samoa into line with international standards.

Inadequate Monetary Laboratory Authority (MLA) Functions

The review identified concerns over the lack of powers and functions exercised by the MLA, which is not operational as a Financial Intelligence Unit (FIU). The mission welcomed the intention of Samoan authorities to broaden the powers and functions of the MLA to include the full range of FIU powers and functions, with these functions being exercised by the Financial Investigation Division (FID).

Company Service Provider Sector

The review also identified areas for improvement in Samoa’s company service provider sector, including:

  • The need for trustee companies to conduct enhanced due diligence on new business transferring to the jurisdiction under redomiciliation.
  • Regular on-site visits should be conducted to trustee companies.
  • Consideration should be given to entering into specific exchange of information agreements with host country supervisors.

Insurance Sector

The review highlighted concerns over Samoa’s insurance sector, including:

  • The need for modernization of insurance legislation to establish the Central Bank of Samoa (CBS) as the licensing and supervisory entity of domestic insurance companies.
  • Close communication and information sharing should be established with insurance regulators in other countries.

Recommendations

The full report of the financial experts’ review has been submitted to the Samoan authorities, and the mission hopes that their recommendations will be implemented to strengthen Samoa’s financial regulation and prevent the misuse of its financial system for money laundering and terrorist financing.

By implementing these recommendations, Samoa can bring its financial regulations in line with international standards and reduce the risk of money laundering and terrorist financing.