Wallis and Futuna Strengthens Regulations Against Financial Crime

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The island nations of Wallis and Futuna are taking significant steps to enhance their regulatory framework against financial crime, in line with international standards. This move aims to prevent the misuse of the islands’ financial systems for illicit activities such as money laundering and terrorist financing.

Regulatory Focus on Anti-Money Laundering and Counter-Terrorist Financing

The Wallis and Futuna government has announced plans to strengthen its anti-money laundering (AML) and counter-terrorist financing (CTF) regulations. The new measures will focus on the following areas:

Enhanced Due Diligence Requirements

• Financial institutions will be required to implement enhanced customer identification and verification processes.
• This includes verifying the identity of customers, assessing their risk profile, and monitoring their transactions.

Increased Reporting Requirements for Suspicious Transactions

• Financial institutions will be required to report suspicious transactions and activities to the relevant authorities in a timely manner.
• This includes reporting transactions that are suspected to be related to money laundering or terrorist financing.

Improved Collaboration between Regulatory Bodies and Law Enforcement Agencies

• The regulatory bodies and law enforcement agencies will work together to share information and coordinate efforts to combat financial crime.
• This includes sharing intelligence, conducting joint investigations, and providing training and support to each other.

Cybercrime and Digital Assets: New Areas of Expanded Regulations

The Wallis and Futuna government is also taking steps to address the growing risks associated with cybercrime and digital assets. The new regulations will focus on:

Strengthening Cybersecurity Measures for Financial Institutions and Other Organizations

• Financial institutions and other organizations will be required to implement robust cybersecurity measures to protect themselves against cyber threats.
• This includes implementing firewalls, intrusion detection systems, and encryption.

Regulating the Use of Digital Assets

• The use of digital assets, including cryptocurrencies and non-fungible tokens (NFTs), will be regulated to prevent their misuse for illicit activities.
• This includes requiring digital asset service providers to register with the regulatory authorities and implement anti-money laundering measures.

Improving the Detection and Reporting of Suspicious Activities Related to Digital Assets

• The regulatory authorities will work together to improve the detection and reporting of suspicious activities related to digital assets.
• This includes sharing intelligence, conducting joint investigations, and providing training and support to each other.

Sanctions and Price Cap Compliance: Continued Focus on Geopolitical Discordance

The Wallis and Futuna government will continue to prioritize sanctions and price cap compliance, given ongoing geopolitical tensions. The new regulations will focus on:

Strengthening Controls for Virtual Currency Mining, Dark Net Markets, and Other High-Risk Activities

• The regulatory authorities will strengthen controls for virtual currency mining, dark net markets, and other high-risk activities.
• This includes requiring these entities to register with the regulatory authorities and implement anti-money laundering measures.

Improving Collaboration with International Partners to Share Information and Coordinate Efforts

• The Wallis and Futuna government will work together with international partners to share information and coordinate efforts to combat financial crime.
• This includes sharing intelligence, conducting joint investigations, and providing training and support to each other.

Enhanced Regulations Expected to Improve Financial Crime Fighting Capabilities

The enhanced regulations in Wallis and Futuna are expected to improve the islands’ ability to combat financial crime, protect their financial systems, and maintain their reputation as a stable and secure financial hub. The new measures will help to prevent the misuse of the islands’ financial systems for illicit activities and ensure that they remain compliant with international standards.

Sources:

• KPMG Regulatory Insights: Ten Key Regulatory Challenges of 2023
• Wallis and Futuna Government: Enhancing Anti-Money Laundering and Counter-Terrorist Financing Regulations

Please note that the content provided is for informational purposes only and should not be considered as legal or financial advice. It’s always best to consult with a qualified professional for specific guidance on regulatory matters.