Combating Money Laundering and Terrorism Financing in the Solomon Islands

Money Laundering

The Solomon Islands’ efforts to combat money laundering are hindered by the non-enactment of the Anti-Corruption Bill law. The full implementation of its provisions is crucial.

Key Challenges:

• Discussions between Customs, Ministry of Tourism, and shipping agencies must include beneficial ownership registration (BCRs) for cruise shipping companies.
• Counter Terrorism and Financing of Terrorism Programs are urgently needed to address these challenges.

Terrorism Financing

Although there is no identified financing of terrorism in the Solomon Islands, the threat may arise from various crimes listed in the country’s Penal Code. The likelihood of terrorist financing will depend on vulnerabilities in the country’s systems and institutions.

Key Concerns:

• Global terrorism is increasing, with limited programs to counter terrorist financing in the SI.
• Social media growth and high youth unemployment increase the risk of terrorist financing.
• Lack of information or statistical data relating to terrorism, terrorist-related activities, or the financing of terrorism in the Solomon Islands.

Specific Issues Concerning Terrorism Financing

The Solomon Islands’ capacity to combat terrorism financing is hindered by:

Capacity:

• Resource constraints and corruption limit the government’s ability to interdict possible terrorists.
• Lack of training for law enforcement and border security officials raises concerns about their effectiveness.
• General capacity issues hinder the government’s ability to address these challenges.

Geographic and Infrastructure:

• Policing borders is a difficult task requiring more resources and capabilities than are available to the SI government.

Population:

• High unemployment rates may lead to greater concerns of funds generating predicate crimes being committed, including financing of terrorism.

Laws:

• The Government of SI can prosecute terrorists and financiers of terrorism under the Counter Terrorism Act 2009 (CTA 2009).

Cooperation and Coordination:

• Law enforcement bodies lack sufficient interagency cooperation and information sharing capabilities regarding terrorism financing.

International Cooperation:

• The Solomon Islands should seek to increase law enforcement capacity through bilateral and multilateral assistance programs.

Courts and Judiciary:

• The judiciary may need additional training before hearing cases involving terrorism and terrorism financing.

Communications:

• Stemming violent extremism and radicalization in the SI through the use of social media is a priority for the government.

Non-Profit Organizations (NPOs):

• NPOs are vulnerable to abuse for the purposes of terrorist financing, including posing as legitimate entities.