Financial Crime World

Vanuatu Financial Intelligence Unit: Cracking Down on Financial Crimes

The Vanuatu Financial Intelligence Unit (FIU) has recently taken bold steps to combat financial crimes in the Pacific island nation. In line with the Anti-Money Laundering & Counter Terrorism Financing Act No. 13 of 2014, the FIU has issued formal warnings, penalty notices, and removal of persons directives to several Reporting Entities.

Enforcement Actions

  • Formal Warnings: The FIU has issued formal warnings to entities that have failed to comply with their regulatory obligations.
  • Penalty Notices: Non-compliant entities have been slapped with penalty notices for breaching the AML&CTF Act.
  • Removal of Persons Directives: Persons involved in non-compliant entities have been removed from the Financial Intelligence Unit’s register.

These actions were carried out under section 50A of the Anti-Money Laundering & Counter Terrorism Financing Act.

Clarifying Due Diligence Checks

The FIU made headlines last month with a clarification on the due diligence checks conducted in relation to the Vanuatu Citizenship Office. According to clause 6(1)(a)(ii) of the Citizenship (Development Support Program) (Amendment) Regulations Order No. 39 of 2020, a designated agent must provide the following documents:

  1. A valid passport
  2. Police or judicial clearance from the applicant’s state of origin
  3. Any other documents reasonably requested by the FIU.

Addressing Concerns over Get-Rich-Quick Schemes

Earlier this year, there were concerns raised over a get-rich-quick business scheme operating in Port Vila. In response, the FIU requested that the business implement appropriate guidelines to comply with the requirements under the AML&CTF Act.

The Importance of Regulatory Oversight

The FIU’s proactive stance against financial crimes emphasizes its commitment to upholding the integrity of the Vanuatu financial system. As the country becomes a global financial hub, the importance of vigorous enforcement and regulatory oversight cannot be overstated.

Stay tuned for more updates from the Vanuatu Financial Intelligence Unit as they continue to protect the island nation from the threat of financial crimes.