Vanuatu Receives Mixed Rating in Anti-Money Laundering Policy Review

Port Vila, Vanuatu

In a recent review of its anti-money laundering policies, Vanuatu received a mixed rating from international watchdogs. The country scored well in some areas, but fell short in others.

Strengths and Weaknesses

According to the Financial Action Task Force (FATF) recommendations, Vanuatu was rated “partially compliant” in several key areas:

• Confiscation and provisional measures
• Terrorist financing offence
• Targeted financial sanctions related to terrorism and terrorist financing
• National cooperation and coordination efforts

However, Vanuatu struggled with implementing certain technical requirements, particularly when it comes to:

• Financial institution secrecy laws
• Record keeping
• Correspondent banking

In these areas, the country was rated “largely compliant” or “non-compliant”.

Areas for Improvement

The review also highlighted areas where Vanuatu needs improvement:

• Customer due diligence practices
• Internal controls
• Foreign branches and subsidiaries

Progress and Roadmap for Improvement

Despite these challenges, Vanuatu’s authorities have made significant progress in implementing anti-money laundering measures. The country has strengthened its financial intelligence unit and improved its cooperation with international partners.

The FATF review provides a roadmap for Vanuatu to address its weaknesses and strengthen its anti-money laundering regime. With continued efforts, the country can improve its reputation as a responsible financial hub in the Pacific region.

Conclusion

The full report is available on the FATF website.