Financial Crime World

American Samoa Tightens Banking Regulations to Combat Money Laundering

The American Samoa government has taken a significant step towards preventing money laundering and maintaining a stable financial system by strengthening banking regulations. The Financial Supervision Department, responsible for overseeing the country’s financial institutions, has implemented new measures aimed at safeguarding the interests of depositors, creditors, policy holders, and unit holders.

Mission to Maintain a Sound and Reputable Financial System

The department’s mission is to maintain a sound and reputable financial system through its prudential supervision approach. This involves monitoring and enforcing international standards and best practices to detect early signs of weaknesses in financial institutions’ performances and overall financial conditions.

Current State of American Samoa’s Financial System

As of January 31, 2018, American Samoa’s financial system consists of:

  • Four commercial banks
  • Six insurance companies
  • Four brokers
  • Seventeen insurance agents
  • The Samoa National Provident Fund (SNPF)
  • The Samoa Housing Corporation (SHC)
  • The Development Bank of American Samoa (DBS)
  • The Unit Trust of American Samoa (UTOS)

Additionally, there are:

  • Twelve money transfer operators/restricted foreign exchange dealers
  • One money changer operating in the country

Regulatory Framework

The Banking Act of 2015, Financial Institution Act of 1996, Insurance Act of 2007, and Money Laundering Prevention Act of 2007 form the foundation of American Samoa’s financial regulatory framework. The Central Bank of American Samoa has also issued various guidelines and regulations to govern the activities of licensed financial institutions.

Licensed and Authorized Financial Institutions

The department maintains a list of licensed and authorized financial institutions, which includes:

  • Commercial banks
  • Insurance companies
  • Non-bank financial institutions
  • Foreign exchange operators
  • Money changers

This list is available for public review.

Expectations

These strengthened banking regulations are expected to boost confidence in American Samoa’s financial system, promote stability, and protect the interests of stakeholders.