Terrorist Financing Detection Methods in Solomon Islands Under Scrutiny

A recent report has highlighted the Solomon Islands’ efforts to combat terrorist financing, with a focus on detection methods and implementation of international standards. The country’s Mutual Evaluation 2019 assessed its compliance with the Financial Action Task Force (FATF) Recommendations.

Assessment Findings

The evaluation revealed that while the Solomon Islands has made progress in implementing some technical requirements, there are areas where improvement is needed. Specifically:

• Risk Assessment and Application of Risk-Based Approach: The country was partially compliant with requirement R.1, which assesses risk and applies a risk-based approach to combat terrorist financing.
• Regulation and Supervision of Financial Institutions: The Solomon Islands was also partially compliant with requirement R.26, which regulates and supervises financial institutions.

Non-Compliance Areas

The report highlighted areas where the Solomon Islands fell short:

• Targeted Financial Sanctions: The country failed to comply with requirements related to targeted financial sanctions (R.6).
• Reporting of Suspicious Transactions: The Solomon Islands did not meet requirements for reporting suspicious transactions (R.20).
• Regulation and Supervision of Designated Non-Financial Businesses and Professions (DNFBPs): The country’s regulation and supervision of DNFBPs, such as casinos and real estate agents, was deemed partially compliant (R.23).

Law Enforcement and International Cooperation

The Solomon Islands’ law enforcement and investigative authorities were found to be largely compliant with requirements related to powers and responsibilities (R.31). However:

• International Cooperation: The country needs to improve its international cooperation, including mutual legal assistance and extradition (R.37-39).

Recommendations and Response

The evaluation’s findings underscore the importance of continued efforts by the Solomon Islands to strengthen its anti-money laundering and combating terrorist financing framework, particularly in areas related to risk assessment, regulation, and international cooperation.

In response to these recommendations, the country has committed to implementing a series of measures aimed at improving its terrorist financing detection methods and enhancing its compliance with international standards.