Financial Crime World

Title: Samoa Cracks Down on Financial Crimes: New Money Laundering Act Aligns with International Standards

##Introduction In the Pacific island nation of Samoa, financial regulations are undergoing a significant shift as the government strengthens its anti-money laundering (AML) regime. Samoa’s initiatives come amidst a global trend to close gaps in the financial supervision system and enforce stricter AML measures.

##International Pressure for AML Best Practices

  • Financial Stability Forum (FSF)
  • Financial Action Task Force (FATF) on Money Laundering
  • Global push for AML best practices

##Samoa’s Early Action

  • 1996 Review assisted by the Commonwealth Secretariat
  • Significant changes to Offshore Banking and International Insurance Acts
  • Money Laundering Prevention Act 2000

##Key Features of the Money Laundering Prevention Act

  1. Covers money laundering
  2. Establishes Money Laundering Authority (MLA)
  3. Applies to financial institutions
  4. Imposes obligations on financial institutions
  5. Overrides secrecy obligations
  6. Introduces currency reporting
  7. Provides for mutual assistance and asset sharing
  8. Makes money laundering an offense

##Educating the Financial Community

  • The Money Laundering Authority seminar
  • Collaboration with international organizations

##Ongoing Efforts and Commitment to International Standards

  • Regular evaluations by international bodies
  • Strengthening Samoa’s reputation as a responsible jurisdiction

##Conclusion Samoa’s financial sector continues its vigilant fight against financial crimes with commitments to international AML standards.

Key Features of the Money Laundering Prevention Act

##1. Money Laundering Coverage

  • Engaging in transactions involving proceeds of crime
  • Reasonable suspicion of proceeds of crime

##2. Establishment of the Money Laundering Authority (MLA)

  • Within the Central Bank of Samoa

##3. Financial Institutions Coverage

  • Offshore banking services
  • Insurance transactions
  • Trust companies
  • Accountants
  • Solicitors
  • Money transmission services

##4. Institutional Responsibilities

  • Record-keeping
  • ‘Know your customer’ principles
  • Compliance with guidelines issued by the MLA

##5. Overriding Secrecy Obligations

  • During money laundering investigations

##6. Currency Reporting

  • At the border
  • Penalties for failure to declare

##7. Mutual Assistance in Money Laundering Investigations and Asset Sharing

  • With foreign states

##8. Money Laundering as an Offense

  • For purposes of extradition
  • Fugitive offenders

Regular Evaluations and Area for Improvement

  • Regular evaluations by international organizations like the UN Programme Against Money Laundering and the Asia Pacific Group on Money Laundering offer opportunities to maintain international standards and identify areas for improvement.