Vanuatu’s Financial Intelligence Unit Fortifies Anti-Money Laundering and Counter-Terrorism Financing Regulations

In the Pacific archipelago nation of Vanuatu, the Financial Intelligence Unit (VFIU) has been working diligently to enhance and update the regulatory framework for Anti-Money Laundering and Counter-Terrorism Financing (AML&CTF). With international obligations and the evolving nature of financial crime in mind, the following legislative developments have taken place.

New AML&CTF Act

The new Consolidated Anti-Money Laundering and Counter-Terrorism Financing Act No. 13 of 2014 came into effect on June 24, 2014, replacing the old Financial Transaction Reporting Act. This act forms the foundation for the regulatory framework and introduces new requirements for reporting entities.

Reporting Entities’ Obligations

Under the AML&CTF Act, reporting entities are required to comply with various preventative measures aimed at protecting the Vanuatu financial system from money laundering and terrorist financing:

Registration with the VFIU
Appointment of an AML&CTF Compliance Officer
Development and maintenance of an AML&CTF Procedure Manual and Group-Wide Procedure Manual
Implementation of risk-based systems and controls
Establishment and maintenance of customer due diligence measures
Record keeping
Submission of transactional reports to the VFIU
Staff training
Establishment of correspondent banking processes
Maintaining an independent audit system

Further Amendments

In addition, the VFIU issued the Anti-Money Laundering and Counter-Terrorism Financing (Amendment) Act No. 16 of 2017 to further strengthen the regulatory framework and ensure compliance with international obligations.

Key Documents

Organizations interested in understanding the implications of these changes can access the following key documents:

Compliance and Transparency

Familiarizing yourself with these documents is crucial for organizations to better understand their obligations under the Vanuatu AML&CTF regulatory framework, promote transparency, accountability, and integrity in the financial sector.