Tuvalu Enforces Stronger Anti-Money Laundering Regulations
Combating Financial Crimes with the Anti-Money Laundering and Counter-Terrorism Financing Act
In a bid to combat financial crimes, Tuvalu has introduced the Anti-Money Laundering and Counter-Terrorism Financing Act No. 13 of 2014, replacing the Financial Transaction Reporting Act that came into effect in 2000.
Comprehensive Framework for AML/CTF Measures
The new law sets out a comprehensive framework for anti-money laundering (AML) and counter-terrorism financing (CTF) measures. It requires businesses and professions providing financial services to:
- Register with the Vulnerability Finance Intelligence Unit (VFIU)
- Implement various AML/CTF preventive measures, including:
- Appointment of an AML/CTF compliance officer
- Establishment and maintenance of procedure manuals
- Risk-based systems and controls
- Customer due diligence
- Record keeping
- Submission of transactional reports to VFIU
- Staff training on AML/CTF issues
- Correspondent banking processes
- Independent audit system
Key Provisions
The act also requires businesses to:
- Establish correspondent banking processes
- Maintain a risk-based approach to customer due diligence
- Emphasize ongoing staff training on AML/CTF issues
Aims and Benefits
The new law aims to prevent the misuse of financial systems for illicit activities such as money laundering and terrorism financing. It is a significant step forward in Tuvalu’s efforts to combat financial crimes and protect its citizens from the risks associated with these illegal activities.
Availability and Amendments
The Anti-Money Laundering and Counter-Terrorism Financing Act No. 13 of 2014 can be downloaded from the VFIU website, along with related legislation such as the Proceeds of Crime Act, Mutual Assistance in Criminal Matters Act, and the Customs Act. The act has undergone several amendments since its introduction, including the Anti-Money Laundering and Counter-Terrorism Financing (Amendment) Act No 16 of 2017 and the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act No. 2 of 2015.
Conclusion
Tuvalu’s commitment to combating financial crimes is a testament to its dedication to upholding international standards and protecting its financial system from abuse. The new law will undoubtedly strengthen the country’s ability to detect and prevent money laundering and terrorism financing, making it a safer and more stable place for its citizens and businesses.