Financial Crime World

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Financial Crimes and Terrorism Funding in American Samoa: A Concerning Reality

American Samoa, a US territory in the Pacific, has been grappling with the issue of financial crimes and terrorism funding for some time now. The country’s recent evaluation by the Financial Action Task Force (FATF) has raised concerns about its implementation of anti-money laundering and combating the financing of terrorism (AML/CFT) measures.

Mixed FATF Ratings

The FATF ratings, which assess a country’s compliance with 40 recommendations aimed at preventing financial crimes, have been mixed for American Samoa. While some areas show promise, others require significant improvement to effectively combat financial crimes and terrorism funding.

Risk Assessment and National Cooperation

  • Risk-Based Approach: The FATF evaluation noted that American Samoa has made progress in assessing risk but still needs to improve its methodology and ensure consistency across all sectors.
  • National Cooperation and Coordination: American Samoa’s national AML/CFT committee is established, but its effectiveness needs to be strengthened through better coordination between government agencies and other stakeholders.

Concerns about Money Laundering and Terrorist Financing

  • Money Laundering Offence: American Samoa’s laws do not provide sufficient criminal penalties for money laundering.
  • Confiscation and Provisional Measures: The country’s confiscation powers are limited, and its provisional measures to freeze and seize assets are not always effective.
  • Terrorist Financing Offence: American Samoa has not implemented adequate measures to prevent the financing of terrorism.
  • Targeted Financial Sanctions: The country’s sanctions regime is limited.

Other Areas for Improvement

  • Customer Due Diligence
  • Record Keeping
  • Reporting of Suspicious Transactions

FATF Recommendations

The FATF evaluation has identified several recommendations for American Samoa to address these concerns and strengthen its AML/CFT regime. The country needs to:

  • Improve national cooperation and coordination
  • Enhance its legal framework
  • Increase public awareness about the risks of financial crimes and terrorism funding

Conclusion

While American Samoa has made some progress in implementing AML/CFT measures, it still faces significant challenges in combating financial crimes and terrorism funding. The country’s authorities need to take concrete steps to address these concerns and ensure that its financial system is not exploited by criminals or terrorists.