Title: Vanuatu Faces Scrutiny over Money Laundering and Terrorist Financing

Subtitle

• The Asia-Pacific Group on Money Laundering (APG) raises concerns about deficiencies in Vanuatu’s anti-money laundering and terrorist financing (AML/CFT) system.

APG’s Updated Public Statement on Vanuatu

• Adoption of the third round mutual evaluation report.
• Vanuatu’s referral to the FATF’s International Cooperation Review Group.

High-Risk Jurisdiction

• Public statement remains until deficiencies are addressed.
• Identified as a high-risk or monitored jurisdiction.

Key Issues in Vanuatu’s AML/CFT System

• Insufficient legal frameworks.
• Inadequate implementation.
• Lack of coordination and institutional capacity.

Risks to the International Financial System

• Significant risks, requiring immediate action.

Gray List and International Cooperation

• Not yet on the FATF’s gray list of jurisdictions.
• APG encourages members to consider risks when making decisions.

Expected Reforms

• Concrete steps needed to strengthen AML/CFT system.
• Substantial reforms to laws and institutions expected.

Importance of Robust AML/CFT Framework

• Risk of isolation in the global financial system.
• Reputational damage for countries failing to meet international standards.

Stay Updated on Vanuatu’s Progress

• Follow updates on the country’s efforts to address APG’s concerns.

Financial Institutions and Stakeholders

• Awareness of risks associated with doing business in the jurisdiction.
• Appropriate measures to mitigate these risks.