Samoa Strengthens Banking Secrecy Laws to Combat Money Laundering and Terrorist Financing
Samoa has taken significant steps to enhance its banking secrecy laws as part of a global effort to combat money laundering and terrorist financing. The country’s anti-money laundering regime, enacted in 2000, is based on the Commonwealth model and aims to prevent money laundering without imposing an undue administrative or financial burden on government or financial institutions.
Compliance with International Standards
Samoa’s regime is compliant with international standards set by the Financial Action Task Force (FATF) and the United Nations Programme Against Money Laundering. The country has also reflected its commitment to the 1992 Honiara Declaration of Pacific Forum Island nations, which aims to strengthen cooperation in the region to combat transnational crime.
New Laws and Measures
The new laws introduce a range of measures aimed at preventing money laundering, including:
- Establishing a Money Laundering Authority within the Central Bank of Samoa, responsible for receiving reports of suspicious transactions and referring them for investigation by the competent authority.
- Implementing strict controls in financial institutions, including “know your customer” principles, and maintaining business transaction records for at least seven years.
- Introducing currency reporting at the border and mandatory reporting of suspicious transactions by financial institutions.
- Overriding secrecy obligations in any enactment if there is a money laundering investigation.
Penalties and Mutual Assistance Agreements
The laws also impose penalties for individuals found guilty of money laundering, including imprisonment and fines. Samoa has signed mutual assistance agreements with other countries to facilitate cooperation in money laundering investigations. The country’s competent authority can assist foreign states in their investigations by obtaining search warrants, freezing and forfeiture orders, and issuing requests for documents and evidence.
Welcome from the Financial Community
The laws have been welcomed by the financial community, which hosted a public seminar to raise awareness of the rationale behind the Act and the statutory obligations of financial institutions. Guidelines on “know your customer” rules are also being developed to take into account the wide range of activities covered by the law.
Membership in International Organizations
Samoa’s commitment to combating money laundering is further demonstrated by its membership of the Asia-Pacific Group (APG) on Money Laundering and its endorsement of the United Nations Programme Against Money Laundering prior to September 2000. The country has also welcomed the opportunity to be evaluated by the Offshore Group of Banking Supervisors, recognizing that such evaluations provide a valuable opportunity to improve the performance of regulators in the financial sector.
By strengthening its banking secrecy laws and implementing measures to prevent money laundering, Samoa is demonstrating its commitment to international cooperation and transparency in the fight against transnational crime.