Financial Crime World

Vanuatu Financial Regulatory Bodies Strengthen Fight Against Money Laundering and Terrorism Financing

The Vanuatu Financial Intelligence Unit (FIU) has announced amendments to the country’s Anti-Money Laundering and Counter-Terrorism Financing Act, aimed at enhancing its capabilities in combating financial crimes.

Background

The FIU is governed by the Anti-Money Laundering and Counter-Terrorism Financing Act No. 13 of 2014, which places certain obligations on reporting entities. The unit has a dual role in intelligence gathering and compliance regulation of financial institutions.

Amendments to AML&CTF Act

The 2017 amendments aim to strengthen the country’s regulatory framework and ensure compliance with international standards. Under the new amendments:

  • Reporting entities are required to:
    • Identify and verify customer identification
    • Monitor transactions
    • Maintain business/transaction records
    • Report certain transactions
    • Implement a compliance regime
  • The FIU is empowered to:
    • Enforce compliance implementation on reporting entities
    • Conduct compliance examinations
    • Issue written directions to take steps to comply with the Act

Mission and Functions

The FIU’s mission is to collect, analyze, and disseminate financial information and intelligence to support the detection, investigation, and prosecution of money laundering, financing of terrorism, and financial/economic crimes. The unit:

  • Collects, analyzes, and disseminates financial information and intelligence
  • Receives, analyzes, assesses, and disseminates financial information to competent authorities

History and Development

The FIU was established in 2000 under the Financial Transaction Reporting Act and has since undergone changes with the enactment of the Anti-Money Laundering and Counter-Terrorism Financing Act No. 13 of 2014.

Government Commitment

The amendments to the AML&CTF Act demonstrate the government’s commitment to strengthening financial regulations and combating financial crimes. The FIU plays a crucial role in this effort, and its enhanced capabilities will help ensure that Vanuatu remains a safe and secure jurisdiction for doing business.

By strengthening its regulatory framework, Vanuatu is taking a proactive approach to combating money laundering and terrorism financing, ultimately protecting the country’s financial system and reputation.