Financial Crime World

Samoa Tightens Money Laundering Prevention with New Legislation: Money Laundering Prevention Act 2023

The Government of Samoa has strengthened its legal framework against money laundering and financial crimes through the enactment of the new Money Laundering Prevention Act 2023. This comprehensive legislation brings Samoa’s laws closer to international standards and includes the following key features:

Key Features

  • Preliminary Provisions (PART I)

    • Short title, commencement, and interpretation of the Act.

  • Money Laundering Prohibited (PART II)

    • Prohibits offenses related to money laundering, such as:
      • Bodies of Persons
      • Attempts
      • Aiding and Abetting
      • Conspiracy
      • Penalties

  • Anti-Money Laundering Supervision (PART III)

    • Establishes the Money Laundering Authority (MLA) responsible for:
      • Supervising financial institutions
      • Implementing anti-money laundering (AML) policies
      • Monitoring transactions for suspicious activity
    • Requires financial institutions to:
      • Report transactions exceeding a certain threshold
      • Cooperate with the MLA during investigations

  • Freezing and Forfeiture of Assets (PART IV)

    • Allows freezing of assets if a person is charged or suspected of a money laundering offense
    • Assets may be forfeited to the State if the person is eventually convicted

  • Mutual Assistance (PART V)

    • Allows for international cooperation and assistance, including:
      • Asset freezing
      • Mutual legal assistance
      • Evidence sharing

  • Extradition (PART VI)

    • Recognizes money laundering as a serious crime for the purpose of extradition

Enhancements and Penalties

  • Stricter penalties
  • Increased supervision
  • Expanded powers for authorities
  • Provisions for reporting, record-keeping, and training

With these enhancements, the Money Laundering Prevention Act 2023 represents a significant step forward in Samoa’s commitment to preventing money laundering and other financial crimes.

Prohibited Offenses and Penalties

Any person who:

  • Intentionally engages in money laundering can be punished with fines and imprisonment
  • Aids, abets, or conspires in a money laundering offense can also face penalties

These penalties apply to both individuals and corporate bodies.

Protection for Disclosures

The Act includes provisions to override secrecy obligations and protect those who make disclosures in compliance with the law.