Tonga Falls Short in Anti-Money Laundering Efforts, Says Global Financial Watchdog

Inadequate Measures to Combat Money Laundering and Terrorist Financing

The Asia-Pacific Group on Money Laundering (APG) has released a scathing assessment of Tonga’s efforts to combat money laundering and terrorist financing. The review, conducted from October 22 to November 1, 2019, found that the Pacific island nation’s measures to protect its financial system were woefully inadequate.

Failure to Meet Key Standards

According to the assessment, Tonga failed to meet key standards set by the Financial Action Task Force (FATF), a global authority on anti-money laundering and counter-terrorist financing. The report’s findings have been endorsed by the FATF, further underscoring the severity of the issue.

Key Areas of Concern

The assessment highlighted several key areas where Tonga fell short, including:

• Lack of effective supervision over financial institutions
• Limited resources to tackle money laundering and terrorist financing
• Laws and regulations not adequately enforced, allowing illegal activities to go unchecked

Urgent Action Required

In a statement, the FATF emphasized the importance of addressing these shortcomings, saying: “Tonga must take immediate action to address these weaknesses and ensure its financial system is protected from abuse.”

Full Report Available Online

The full report, including key findings and priority actions, can be found online.