Financial Crime World

Samoan Financial Institutions Required to Implement Anti-Money Laundering and Counter-Terrorism Financing Measures

To strengthen its financial system, the Samoan Government has introduced regulations requiring licensed and regulated financial institutions, locally incorporated public companies, government administrations or enterprises, and other relevant entities to implement robust anti-money laundering (AML) and counter-terrorism financing (CTF) measures.

Implementation of AML and CTF Measures

Financial institutions must adopt and implement effective programs against money laundering and financing of terrorism, including:

  • Written procedures
  • Policies
  • Systems
  • Controls

These programs must be designed to deter and prevent AML and CTF activities, taking into account the risk of such activities, the size and nature of business, and the types of products and services offered by the financial institution.

Customer Identification and Risk Assessment

Financial institutions are required to identify customers whose activities pose a higher or lower risk of money laundering or financing of terrorism. Additionally, they must have measures in place to guard against establishing relationships with shell banks, which are banks incorporated in jurisdictions without physical presence and unaffiliated with regulated financial groups.

Compliance Officer and Independent Testing

To ensure effective implementation of AML and CTF measures, the regulations require financial institutions to:

  • Appoint a compliance officer at a senior level within the institution
  • Conduct independent testing of compliance with AML and CTF measures, including sample testing

The auditor’s report may also be shared with the supervisory authority.

Staff Recruitment and Training

Financial institutions are required to put in place screening procedures to ensure high standards when hiring employees and to prevent the employment of persons convicted of offenses related to AML or CTF.

Conclusion

The Samoan Government hopes that these regulations will help strengthen its financial system and reduce the risk of money laundering and financing of terrorism. By implementing robust AML and CTF measures, financial institutions can play a critical role in maintaining the integrity of the financial system and preventing illicit activities.