Financial Crime World

Financial Crime Law in Vanuatu: A Look at the Anti-Money Laundering and Counter-Terrorism Financing Act

In the tropical Pacific Island nation of Vanuatu, financial crime is a growing concern. To address this issue, the Republic of Vanuatu enacted the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Act No. 13 of 2014. This law establishes the Financial Intelligence Unit (FIU) and outlines the responsibilities of reporting entities to prevent money laundering, terrorist financing, and other financial crimes.

Definitions and Scope (Section 1)

The Act provides definitions for key terms such as:

  • Account
  • Activity
  • Assisting entity
  • Beneficial owner
  • Business relationship
  • Customer
  • Funds
  • Transaction

These definitions are essential for understanding the scope of the law and the role of the reporting entities in detecting and preventing financial crimes.

Financial Intelligence Unit (Part 2)

Establishment and Functions (Section 4)

The FIU plays a crucial role in enforcing the AML/CTF Act. Its functions include:

  • Receiving, analyzing, and assessing suspicious transaction reports (STRs) and other information
  • Gathering information for the purposes of the Act
  • Disclosing information to assisting entities for the detection, investigation, or prosecution of money laundering, terrorist financing, or other serious offenses
  • Collecting information relevant to money laundering, terrorist financing, or other serious offenses
  • Entering into agreements or arrangements with assisting entities for information exchange
  • Requesting information from assisting entities to assist in analysis or assessments
  • Directing reporting entities to take steps in relation to information or reports

Powers (Section 5)

The FIU is endowed with the necessary powers to carry out its functions effectively. With the assistance of the Minister, the Director of the FIU may enter into agreements or arrangements with foreign entities for the exchange of information.

Stay tuned for the continuation of our exploration of Vanuatu’s Anti-Money Laundering and Counter-Terrorism Financing Act, including the roles and responsibilities of reporting entities and penalties for non-compliance.


Note: This markdown is just a representation and might require slight modifications based on specific markdown renderers and requirements.