Source: 2005
Released by the Bureau for International Narcotics and Law Enforcement Affairs
Money laundering does not appear to be a significant problem in Fiji. Much of the money laundering that does occur results from the use of Fiji as a transshipment point for illegal narcotics. There have also been a number of money laundering investigations involving foreign exchange dealers and overseas remittances. The Director of Public Prosecutions has successfully imposed freezing orders on several occasions. However, there have not yet been any prosecutions or confiscations of criminal assets.
Money laundering is criminalized under the Proceeds of Crime Act of 1997. In August 2002, Fiji also established an anti-money laundering legislation working group to study needed enhancements to legislation. Key measures include widening the scope and coverage of financial institutions to include non-traditional financial and banking institutions. As a result, a new Financial Transactions Reporting Act was passed by both houses of Parliament in December 2004. The legislation will be implemented in early 2005 and amendments to the Proceeds of Crime Act and Mutual Assistance in Criminal Matters Act are in the final draft stage. Amendments to the Proceeds of Crime and the Mutual Assistance Act have been proposed to allow, among other things, for civil and criminal forfeitures and the extension of mutual assistance to foreign countries. Cabinet has given approval for the review and drafting of the amendments, which will be put before Parliament in early 2005.
The Reserve Bank of Fiji (RBF) has issued anti-money laundering guidelines for licensed financial institutions. These guidelines require licensed financial institutions to develop customer identification procedures, keep transaction and other account records for seven years, and report suspicious financial transactions to both the RBF and the anti-money laundering unit in the Fiji Police Force,s Criminal Investigation Department. These guidelines went into effect in January 2001. On-site examinations of licensed banks and other deposit taking institutions for compliance with anti-money laundering laws and guidelines are reportedly ongoing.
The Permanent Secretary for Justice, along with senior representatives from the Attorney General,s Office, the Office of the Director of Public Prosecutions, the Office of the Commissioner of Police, the RBF, and the Fiji Revenue and Customs Authority compose the Anti-Money Laundering Officials Committee. The Committee was established in 1998 and meets once a month to discuss the implementation of anti-money laundering measures in Fiji. In September 2002, policy guidelines were issued to authorized foreign exchange dealers and moneychangers, which included requirements to comply with anti-money laundering measures. Also in 2002, the Fiji Police, with input from the RBF and the Association of Banks in Fiji, issued a standardized suspicious transaction reporting form. More than 400 suspicious transaction reports were filed in 2004.
In 2003, Fiji established a Financial Intelligence Unit (FIU). The FIU is currently based in the Reserve Bank of Fiji. Fiji,s FIU became operational in November 2003 and is responsible for identifying and referring suspect transactions to the Director of Public Prosecutions for further investigation. More than 100 cases have been developed directly from suspect transaction reports (STRs), all of which are currently being investigated by law enforcement authorities: Police, Customs, Immigration and Tax Authorities.
Fiji is a member of the Asia/Pacific Group on Money Laundering (APG). In February 2002, the APG conducted a mutual evaluation of Fiji. Fiji is a party to the 1988 UN Drug Convention. Fiji is not yet a party to either the UN International Convention for the Suppression of the Financing of Terrorism or the UN Convention against Transnational Organized Crime. In February 2003, a Counter-Terrorism Officials Group was established. The Group has drafted model counterterrorism legislation for Pacific Island countries.
The Government of Fiji has sent representatives to attend a plenary session of the Egmont Group in 2003 and to a training seminar in October 2004 for new and emerging FIUs. Fiji would like to gain admission to the Egmont Group in 2005. Fiji should criminalize terrorist financing and continue to develop its anti-money laundering regime. Fiji should become a party to the UN International Convention for the Suppression of the Financing of Terrorism and the UN Convention against Transnational Organized Crime.