Financial Crime World

Securing Borders from Criminal Activity: Solomon Islands Introduces New Regime

The Solomon Islands Customs and Excise Division of the Ministry of Finance and Treasury has taken a significant step in preventing the country’s borders from being used as transit points by criminals to advance their aims and objectives.

Declaring Large Amounts of Cash at Borders

As part of this new regime, all incoming and outgoing passengers are required to declare if they are carrying more than SBD$50,000 or its equivalent in foreign currency. Failure to declare or falsely declaring such amounts can lead to severe penalties, including:

  • Fines up to 500,000 penalty units
  • Imprisonment for a term not exceeding five years
  • Orders for forfeiture of the currency

This regime is designed to prevent ill-gotten launderers from targeting Solomon Islands as a gateway to launder their stolen assets and wealth.

Statistics on Cash Transactions

According to statistics:

  • In 2013, a total of 18 incoming travelers declared SBD$1,224,399
  • 23 outgoing travelers declared SBD$3,234,103
  • The majority of the currencies declared were foreign currencies converted to reflect their value in local currency

Regime Covers Various Forms of Currency

The regime also covers:

  • Negotiable bearer instruments (e.g. cheques, travellers’ cheques, money orders)
  • Coins and paper money of Solomon Islands or a foreign country designated as legal tender
  • Monetary instruments that can be exchanged for money (e.g. cash)

Role of the Solomon Islands Financial Intelligence Unit

The Solomon Islands Financial Intelligence Unit (SIFIU) plays a crucial role in ensuring compliance with anti-money laundering and combating the financing of terrorism (AML/CFT) requirements. SIFIU:

  • Holds quarterly meetings with Money Laundering Reporting officers from commercial banks to discuss AML/CFT issues and share best practices
  • Conducts awareness workshops and training sessions for law enforcement agencies to enhance their skills in detecting and preventing money laundering and terrorist financing activities
  • Oversees financial institutions, cash dealers, and designated non-financial businesses and professions to ensure they comply with international standards on anti-money laundering and combating terrorism

Conclusion

The Solomon Islands’ new regime aims to prevent the country’s borders from being used as a transit point for criminal activity. The introduction of this regime and the role played by SIFIU demonstrate the government’s commitment to combating money laundering and terrorist financing.