Financial Crime World

Title: “Solomon Islands at Risk: Money Laundering and Terrorism Financing Threats Identified in National Assessment”

Solomon Islands and Global Threats

  • The Solomon Islands, a Pacific Ocean nation, faces threats of money laundering (ML) and terrorism financing (TF) (AMLC)
  • ML and TF are infiltrating new markets, including the Solomon Islands, using advanced processes and technologies
  • Traditional crimes contribute to these funds, such as bribery, corruption, fraud, illegal logging, revenue evasion, illegal fishing, and illegal gold export

Money Laundering and Terrorism Financing National Risk Assessment

  • Conducted between August 2016 and May 2017 by the Solomon Islands Anti-Money Laundering Commission (AMLC)
  • Led by the Solomon Islands Attorney General (AG) and the Governor of the Central Bank of Solomon Islands (CBSI)
  • Key findings from the assessment: high-level threats from bribery/corruption, fraud, illegal logging, revenue/tax evasion, illegal fishing, and illegal gold export

Risks and Consequences

  • Bribery/corruption and fraud are the most significant risks, with widespread misuse and corruption reported
  • Illegal logging, revenue/tax evasion, and illegal fishing present similar risks, as funds associated with these offenses are often laundered
  • Illegal gold export contributes to evasion of export duties and potential repatriation of funds offshore using alluvial gold exports

Unique Vulnerabilities

  • Solomon Islands has a cash economy and underdeveloped financial and non-financial sectors
  • Absence of sufficient supervisory and licensing agencies contributes to a higher likelihood of ML/TF occurring

Mitigating Strategies

  • Expand discussions with Customs and Ministry of Tourism
  • Address the lack of adequate resourcing for supervisory and licensing agencies
  • Enact the Anti-Corruption Bill
  • Counter terrorism and financing of terrorism programs

Terrorism Financing Threats

  • No identified instances of terrorism financing in the Solomon Islands as of yet
  • Proactive measures needed, as regional and global circumstances could lead to an increase in these threats