Financial Crime World

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Tonga Struggles to Effectively Combat Money Laundering and Terrorist Financing

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Nuku’alofa, Tonga - The Pacific island nation of Tonga has been found to have significant deficiencies in its efforts to combat money laundering and terrorist financing, according to a recent assessment by international authorities.

Assessment Highlights Deficiencies

The assessment, conducted by the Asia-Pacific Group on Money Laundering (APG), found that Tonga had failed to implement key measures to prevent money laundering and terrorist financing. The country was criticized for lacking effective policies and procedures to identify and mitigate risks associated with these crimes.

Key Issues Identified

  • Lack of enforceability of anti-money laundering regulations, issued in 2018 but lacking sanctions and penalties for non-compliance.
  • Many reporting entities, including insurance companies and other financial institutions, were not subject to the same regulations as banks.
  • Out-of-date risk assessments that lacked consultation with the private sector.
  • Inadequate training and resources allocated to anti-money laundering and counter-terrorism financing (AML/CFT) issues.

Concerns about Competent Authorities

Tonga’s competent authorities, including law enforcement agencies, were also found to have a mixed understanding of money laundering risks, with many displaying a lack of knowledge about terrorist financing risks.

Recommendations for Improvement

  • Improve risk assessments and regulations.
  • Increase the allocation of resources to its anti-money laundering supervisor.
  • Enhance training and awareness among reporting entities.

Government Response

Tonga’s government has acknowledged the importance of combating money laundering and terrorist financing and has established a Cabinet Committee on Serious Financial Crimes to coordinate efforts. However, more needs to be done to ensure that the country is effectively addressing these threats.

Full Report Available

The full report by the Asia-Pacific Group on Money Laundering can be accessed at [insert link].

Contact Information

For further information, please contact [insert name], APG Secretariat.