Financial Crime World

Financial Regulation Compliance in Samoa: Maintaining a Sound and Reputable Financial System

The Central Bank of Samoa is committed to maintaining a sound and reputable financial system, ensuring the interests of depositors, creditors, policy holders, and unit holders are safeguarded. The bank’s mission is to promote confidence by monitoring and enforcing international standards and best practices.

Objectives of Supervision

To achieve this objective, the Financial Supervision Department focuses on:

  • Detecting early signs of weaknesses in financial institutions’ performances and overall financial conditions through regular on-site reviews and analysis of financial information.
  • Prudential supervision concentrates primarily on identifying potential issues before they escalate into major problems.

Supervisory Framework

The Central Bank’s supervisory framework is guided by several key laws, including:

  • The Central Bank of Samoa Act 2015
  • The Financial Institution Act 1996
  • The Insurance Act 2007
  • The Money Laundering Prevention Act 2007

The bank’s supervision is designed to ensure compliance with these regulations and maintain a stable financial system.

Overview of the Financial System in Samoa

As of January 31, 2018, Samoa’s financial system comprises several key sectors:

  • Banking industry: Four commercial banks
  • Insurance industry: Six insurance companies
  • Non-bank financial institutions: Various types of businesses that provide financial services
  • Foreign exchange industry: Four brokers and 17 insurance agents operating in the country

Licensed Financial Institutions

The Central Bank has released a list of licensed and authorized financial institutions, which can be accessed through an attached document. The list includes information on:

  • Banking system data
  • Prudential statements
  • Licensing requirements for conducting foreign exchange business in Samoa

Ongoing Supervision and Compliance

In its ongoing efforts to maintain a sound financial system, the Central Bank continues to monitor the performance of licensed financial institutions and ensure compliance with regulatory requirements. This commitment has earned Samoa’s financial sector a reputation as stable and reputable, attracting both local and international investors.

By maintaining a strong supervisory framework and ensuring compliance with regulations, the Central Bank of Samoa is able to promote confidence in the country’s financial system and support economic growth.