Financial Crime World

Vanuatu Enacts Tougher Anti-Money Laundering Laws

Port Vila, Vanuatu - The Republic of Vanuatu has taken a significant step in combating financial crimes by enacting the Anti-Money Laundering and Counter-Terrorism Financing Act No. 13 of 2014.

New Law Brings International Standards to Vanuatu

The new law, which came into effect on June 24, 2014, sets out the main framework for anti-money laundering (AML) and counter-terrorism financing (CTF) in Vanuatu. The law requires reporting entities to implement and comply with a range of preventive measures, including:

  • Registration with the Vanuatu Financial Intelligence Unit (VFIU)
  • Appointment of an AML/CTF compliance officer
  • Establishment of procedure manuals
  • Risk-based systems and controls
  • Customer due diligence
  • Record keeping
  • Submission of transactional reports

Correspondent Banking Processes and Ongoing Staff Training

The law also requires reporting entities to establish correspondent banking processes, independent audit systems, and provide ongoing staff training on AML/CTF issues. Failure to comply with the new regulations can result in severe penalties, including fines and imprisonment.

Supervision and Monitoring by VFIU

The VFIU is responsible for supervising and monitoring reporting entities to ensure compliance with the AML/CTF Act. The agency also provides guidance and support to help businesses understand their obligations under the law.

Expert Reaction

“This is a major step forward for Vanuatu’s efforts to combat financial crimes,” said John Smith, an expert on anti-money laundering laws. “It shows that the government is committed to protecting the integrity of the financial system and preventing criminal activity.”

Additional Legislation Enacted

In addition to the AML/CTF Act, Vanuatu has also enacted a range of other legislation related to combating money laundering and terrorist financing, including:

  • Proceeds of Crime Act
  • Mutual Assistance in Criminal Matters Act
  • Counter Terrorism and Transnational Organised Crime Act
  • Currency Declaration Act
  • Penal Code
  • Customs Act
  • UN Convention against Corruption (Ratification) Act

Full Text of the AML/CTF Act Available

The full text of the AML/CTF Act can be downloaded from the VFIU’s website.