Tonga Fails to Meet Anti-Terrorism Financing Standards, Finds International Review

A comprehensive assessment conducted by the Asia-Pacific Group on Money Laundering (APG) has revealed that Tonga’s measures to combat money laundering and terrorist financing are lacking, leaving its financial system vulnerable to abuse.

Background

The review was conducted from October 22 to November 1, 2019, and evaluated the effectiveness of Tonga’s anti-money laundering and counter-terrorism financing (AML/CFT) systems. The assessment was conducted by APG, an international organization responsible for promoting cooperation among countries in the fight against money laundering and terrorist financing.

Findings

According to the review’s findings, which have been endorsed by the Financial Action Task Force (FATF), Tonga has failed to meet several key standards aimed at preventing its financial system from being exploited by criminal networks and terrorists. The report’s executive summary highlights a range of shortcomings in Tonga’s AML/CFT regime, including:

• Weaknesses in customer due diligence
• Inadequate suspicious transaction reporting
• Lack of effective supervision over financial institutions
• Gaps in Tonga’s legal framework
• Inadequate resources allocated to its anti-money laundering authority

Call to Action

As a result, APG has called on Tonga to take immediate action to address these deficiencies and implement priority measures aimed at improving its AML/CFT regime.

Full Report Available

The full report detailing the key findings and priority actions for Tonga is available online.