Solomon Islands Struggles to Detect Money Laundering: Report Finds

Progress in Anti-Money Laundering Measures

The Solomon Islands has made significant strides in implementing anti-money laundering measures, as reported by a recent study. While the country’s rating for compliance with international standards has improved, there are still areas where it falls short.

Key Areas of Improvement

• Risk Assessment and National Cooperation: The report notes that the Solomon Islands has made progress in assessing risk and applying a risk-based approach, as well as national cooperation and coordination.
• Combating Money Laundering Offences: The country’s rating for combating money laundering offences is listed as “largely compliant”, with efforts to confiscate assets and impose provisional measures also considered “largely compliant”.

Challenges and Weaknesses

Financial Institution Secrecy Laws

The report highlights concerns over the Solomon Islands’ financial institution secrecy laws, which it says hinders efforts to detect money laundering.

Customer Due Diligence Procedures

• Record-Keeping: The country’s customer due diligence procedures were found to be largely compliant, but there are still issues with record-keeping.
• Reliance on Third Parties: Additionally, the report notes that the Solomon Islands relies heavily on third parties for certain financial transactions.

Powers of Supervisors and Law Enforcement Agencies

The Solomon Islands needs to improve its powers of supervisors and law enforcement agencies to effectively combat money laundering.

Call to Action

The report’s findings come as a wake-up call for the Solomon Islands government, which must now take concrete steps to address these weaknesses and improve its anti-money laundering regime.