Financial Crime World

Vanuatu Tightens Grip on Anti-Money Laundering Policies

Combating Money Laundering and Terrorist Financing

In 2014, the Government of Vanuatu implemented a new Anti-Money Laundering and Counter-Terrorism Financing Act (AML&CTF) to combat money laundering and terrorist financing. The law replaced the old Financial Transaction Reporting Act, which was introduced in 2000.

Main Framework for AML and CTF

The AML&CTF Act sets out the main framework for anti-money laundering and counter-terrorism financing by classifying businesses and professions as reporting entities under the act. These entities are required to implement and comply with various preventive measures aimed at detecting and preventing illegal activities, including:

  • Registration with the Vanuatu Financial Intelligence Unit (VFIU)
  • Appointment of an AML&CTF compliance officer
  • Establishment and maintenance of procedure manuals and risk-based systems
  • Customer due diligence and record-keeping requirements
  • Submission of transactional reports to the VFIU
  • Ongoing staff training on anti-money laundering and counter-terrorism financing issues
  • Establishment of correspondent banking processes
  • Maintenance of an independent audit system

The AML&CTF Act has been amended several times since its introduction, with the most recent amendments being made in 2017 and 2015. The government has also introduced related legislation to combat money laundering and terrorist financing, including:

  • Proceeds of Crime Act
  • Mutual Assistance in Criminal Matters Act
  • Currency Declaration Act

Experts’ Views

Experts believe that the new law will help Vanuatu strengthen its reputation as a financial hub in the Pacific region and improve its ability to detect and prevent illegal activities. However, more needs to be done to ensure effective implementation of the law and enforcement of anti-money laundering policies.

Availability of AML&CTF Act

The AML&CTF Act can be downloaded from the government’s website, along with related legislation and regulations.