Financial Crime World

TOKELAU FALLS SHORT OF COMPLIANCE WITH FATF RECOMMENDATIONS

FATF Expresses Concerns Over Tokelau’s Anti-Money Laundering and Combating Terrorism Efforts

The Financial Action Task Force (FATF) has expressed concerns over Tokelau’s lack of compliance with its recommendations, particularly in the areas of anti-money laundering (AML) and combating the financing of terrorism (CFT).

Key Concerns

  • Lack of a financial intelligence unit (FIU): Tokelau has not established an FIU, which is a critical component in identifying and reporting suspicious transactions.
  • Insufficient cooperation with international partners: Tokelau has been slow to cooperate with international partners when it comes to sharing information on suspected individuals or entities involved in money laundering or terrorist financing.

TOKELAU’S AML/CFT FRAMEWORK FALLS SHORT

Tokelau’s AML/CFT framework is considered inadequate by the FATF. The country has not put in place adequate laws and regulations to prevent money laundering and terrorist financing, nor has it established a system for identifying and reporting suspicious transactions.

Shortcomings in Tokelau’s AML/CFT Framework

  • Inadequate laws and regulations: Tokelau does not have effective laws and regulations in place to prevent money laundering and terrorist financing.
  • Lack of resources and infrastructure: The country lacks sufficient personnel, technology, and funding to effectively implement its AML/CFT measures.

TOKELAU URGED TO TAKE ACTION

The FATF has urged Tokelau to take immediate action to address the shortcomings in its AML/CFT framework. The organization has called on the country to:

  • Establish a financial intelligence unit (FIU): This is a critical component in identifying and reporting suspicious transactions.
  • Implement effective laws and regulations: Tokelau must put in place adequate laws and regulations to prevent money laundering and terrorist financing.
  • Provide adequate resources and training: The country needs sufficient personnel, technology, and funding to effectively implement its AML/CFT measures.

Next Steps

Tokelau is expected to submit a follow-up report to the FATF by June 2024, outlining the steps it has taken to address the concerns raised in the latest report. Failure to do so may result in further action being taken by the FATF, including the imposition of sanctions or other measures.