Financial Crime World

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Vanuatu Enacts Stronger AML Regulations for 2022

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Port Vila, Vanuatu - The Republic of Vanuatu has strengthened its Anti-Money Laundering (AML) regulations with the introduction of the Anti-Money Laundering and Counter-Terrorism Financing Act No. 13 of 2014, which came into effect on June 24, 2014.

Overview of the AML&CTF Act

The AML&CTF Act replaces the old Financial Transaction Reporting Act, which was introduced in 2000. The new legislation sets out the main framework for AML&CTF measures by requiring businesses and professions to register with the Vanuatu Financial Intelligence Unit (VFIU) and implement a range of preventive measures.

Measures Implemented

These measures include:

  • Registration of business with VFIU
  • Appointment of an AML&CTF Compliance Officer
  • Establishment and maintenance of procedures and systems
  • Customer due diligence
  • Record keeping
  • Submission of transactional reports
  • Staff training
  • Correspondent banking processes
  • Independent audit systems

Classification of Reporting Entities

The AML&CTF Act also requires reporting entities to establish risk-based systems and controls to prevent money laundering and terrorism financing. The legislation provides for the classification of businesses and professions as reporting entities under the AML&CTF Act, setting out specific requirements for each category.

In addition to the AML&CTF Act, Vanuatu has a range of related legislation aimed at combating money laundering and terrorism financing. These include:

  • 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

Impact on Businesses

The strengthening of AML regulations in Vanuatu is seen as a major step forward in the country’s efforts to combat financial crimes and maintain its reputation as a stable and reputable financial hub. The regulations are expected to have a significant impact on businesses operating in Vanuatu, requiring them to implement robust AML systems and controls to prevent money laundering and terrorism financing.

Accessing the Full Text of the Legislation

The full text of the Anti-Money Laundering and Counter-Terrorism Financing Act No. 13 of 2014 and related legislation can be downloaded from the government’s website.