Financial Crime World

Samoa Cracks Down on Financial Crime with New Anti-Money Laundering Regime

In the Pacific Island nation of Samoa, the government has strengthened financial crime prevention measures with the enactment of the new Money Laundering Prevention Act (MLPA) in 2000. The MLPA is part of a global effort to combat money laundering and maintain the viability of Samoa’s offshore finance center.

Review of Offshore Laws and the Introduction of the MLPA

The Samoan government, with the assistance of the Commonwealth Secretariat, began a review of offshore laws in 1996. The results of this review brought significant changes to the Offshore Banking and International Insurance Acts and the introduction of the Money Laundering Prevention Act (MLPA).

Key Aspects of the New Legislation

Below are the crucial aspects of Samoa’s MLPA:

  1. Money Laundering: Primarily focuses on ill-gotten gains, assuming an offense has already been committed. Schedule 2 of the Act lists both local and offshore offenses.
  2. Money Laundering Authority: The establishment of a Money Laundering Authority within the Central Bank of Samoa. This entity receives and considers suspicious transactions reported by financial institutions and refers them for investigation to the Attorney General and Commissioner of Police.
  3. Financial Institution Obligations: Financial institutions are required to keep business transaction records, develop anti-money laundering policies, and comply with guidelines issued by the Money Laundering Authority.
  4. Reporting and Investigation: Allows for the overriding of secrecy obligations in enactments for money laundering investigations and introduces currency reporting at the border.
  5. Mutual Assistance: Facilitates international cooperation, enabling Samoa to assist foreign states in money laundering investigations and vice versa.

Awareness and International Commitment

To raise awareness of the importance of the MLPA, the Money Laundering Authority recently held a public seminar for the financial community. Samoa’s commitment to the fight against money laundering is further demonstrated through its endorsement of the United Nations Programme Against Money Laundering and its membership in the Asia Pacific Group on Money Laundering.

Erna Va’ai’s Emphasis on Continuous Review

Erna Va’ai, Registrar of International and Foreign Companies, Office of the Registrar of International and Foreign Companies, Samoa, emphasizes the importance of continually reviewing operations following internationally recognized standards to maintain Samoa’s reputation as a responsible jurisdiction.