Tonga Falls Short in Money Laundering Detection Methods, Says APG Assessment

A comprehensive review of Tonga’s measures to combat money laundering and terrorist financing has revealed significant shortcomings in its ability to detect and prevent financial crimes.

Vulnerabilities in Financial System

The assessment, conducted by the Asia-Pacific Group on Money Laundering (APG), found that Tonga’s financial system is vulnerable to abuse and is not fully compliant with international standards set by the Financial Action Task Force (FATF).

Review Methodology

The APG review took place from October 22nd to November 1st in 2019. The assessment evaluated the effectiveness of Tonga’s measures to protect its financial system from money laundering and terrorist financing.

Key Findings and Recommendations

According to the report, Tonga needs to strengthen its anti-money laundering regime by:

• Improving detection methods for suspicious transactions
• Enhancing cooperation with foreign authorities
• Filling gaps in customer due diligence requirements
• Regulating money service businesses more effectively

Priority Actions

The full report is available online, with key findings and priority actions outlined in an executive summary.

Conclusion

Tonga’s financial system faces significant vulnerabilities to abuse, and it must take immediate action to strengthen its anti-money laundering regime and improve cooperation with foreign authorities. The APG assessment provides a roadmap for Tonga to improve its compliance with international standards and protect its financial system from money laundering and terrorist financing.