Financial Crime World

Vanuatu’s Financial Intelligence Unit Enforces New Anti-Money Laundering Laws

The Vanuatu Financial Intelligence Unit (FIU) has announced the implementation of new amendments to the Anti-Money Laundering & Counter-Terrorism Financing (AML&CTF) Act No. 13 of 2014. These changes will enhance the regulatory framework for reporting entities and strengthen the country’s efforts to combat financial crimes.

New Regulations for Reporting Entities

  • The new legislation, which took effect on June 24, 2014, replaced the old Financial Transaction Reporting Act.
  • Reporting entities must now identify and verify customer identities.
  • They are also required to monitor transactions and maintain business and transaction records.
  • Specific transactions must be reported to the FIU.

FIU’s AML&CTF Act Compliance Enforcement

  • The FIU may issue written directions to financial institutions to ensure AML&CTF Act compliance.
  • These directions may include specific implementation timeframes and a written action plan detailing the steps the institution intends to take.

Consequences of Non-Compliance

  • Failure to comply with FIU instructions may result in regulatory consequences for the reporting entity.
  • By promoting transparency and robust AML&CTF compliance, Vanuatu aims to maintain a reputable financial services sector and adhere to international best practices.

About the Vanuatu FIU

  • The Vanuatu Financial Intelligence Unit (FIU) is a unit within the State Law Office, located in the Prime Minister’s Complex.
  • It was enacted in September 2000 and is managed and governed by the Anti-Money Laundering and Counter-Terrorism Financing Act No. 13 of 2014.
  • Its primary functions include collecting, analyzing, and disseminating financial information and intelligence to counter money laundering, terrorism financing, and suspected proceeds of crime.

The FIU’s Two-fold Mission

  • The FIU’s mission consists of two primary roles: intelligence gathering and compliance regulation of financial institutions.
  • While these roles are distinct, they are complementary in the ongoing fight against financial crimes.