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AML/CTF compliance in Samoa

WHAT ARE THE

Money laundering and terrorism financing laws in Samoa?

Samoa has implemented the Anti-Money Laundering and Counter Terrorist Financing (AML/CTF) National Strategy 2016-2020 as its national strategy to combat money laundering and terrorist financing.

WHAT ARE THE

Key obligations reporting entities have under Samoans laws?

The key obligations that reporting entities have under the AML/CFT laws in Samoa can be categorized as follows:

  • Customer Due Diligence and Identification: Reporting entities are required to verify the identity of their customers, understand the nature of their business, and determine if they are politically exposed persons (PEPs). This step is crucial in preventing illegal activities.

  • Risk Management: Reporting entities are obligated to implement risk management systems tailored to their specific risk profiles. This involves adopting a risk-based approach to their operations.

  • Compliance Regimes: Reporting entities must establish compliance regimes to comply with AML/CFT laws. This includes appointing a compliance officer, training employees, and conducting audits.

  • Reporting Obligations: Reporting entities are required to identify and report suspicious transactions that could potentially be linked to money laundering or terrorist financing to the appropriate authorities.

  • Record-Keeping: Reporting entities are obligated to maintain detailed records of their customer transactions and due diligence checks for a specified period.

The specifics of these obligations may vary depending on the type of reporting entity and the nature of their business.

WHO ARE THE

ML/TF regulators in Samoa and what functions do they perform?

The regulators of money laundering and terrorism financing in Samoa include:

  • The Governor of the Central Bank of Samoa: The Governor also serves as the Money Laundering Prevention Authority.
  • The Money Laundering Prevention Task Force: This is a group tasked with preventing money laundering activities.
  • The Samoa Financial Intelligence Unit: This unit is responsible for collecting and analyzing information about financial transactions to combat money laundering and terrorism financing.
  • The Central Bank of Samoa: This institution oversees the country's monetary policy and financial institutions.
  • The Samoa International Finance Authority: This authority regulates international financial services in Samoa.
  • The Samoan Institute of Accountants: This professional body ensures that accountants comply with relevant financial regulations and standards.

These regulators ensure compliance with the requirements of the Money Laundering Prevention Act 2007, the Money Laundering Prevention Regulations 2009, and the Prevention and Suppression of Terrorism Act 2002.

WHAT ARE THE

Industry sectors subject to ML/TF regulations?

The industry sectors regulated under the Money Laundering Prevention Act 2007 (MLPA) and the Money Laundering Prevention Regulations 2009 (MLPR) in Samoa include:

Banks

This refers to all commercial banks, rural banks, and sharia banks. They are required to conduct customer due diligence, report suspicious transactions, and maintain comprehensive records.

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Insurance Companies

All types of insurance providers, including life, general, reinsurance, and sharia insurance companies, fall under the purview of AML/CFT laws. They need to adhere to the same standards of due diligence and reporting as banks and non-bank financial institutions.

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Securities Companies and Capital Markets

Securities underwriters, brokers, dealers, and investment managers, as well as mutual funds. They are obliged to follow AML/CFT regulations in their operations.

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Non-Bank Financial Institutions

Including money remitters, finance companies, credit unions, pawnshops, and leasing companies. Similar to banks, they are also obligated to comply with AML/CFT regulations.

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Larger Financial Institutions

Are more closely regulated due to the higher risks associated with their size and the volume of transactions they handle. This includes larger banks, insurance companies, and other financial services providers.

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WHAT ARE THE

Penalties for non-compliance with AML/CTF laws?

The penalties for non-compliance with AML/CTF laws in Samoa are quite severe and include the following:

  • Assisting in Money Laundering or Terrorist Financing: This offense can lead to fines of up to 10,000 penalty units, imprisonment for up to 7 years, or both.

  • Assisting in the Financing of Terrorist Acts: This offense can lead to a fine not exceeding 1,000 penalty units, imprisonment for up to 5 years, or both.

  • Failure to Report Knowledge or Suspicion of Money Laundering or Terrorist Financing: This can result in a maximum fine of 500 penalty units.

  • Revocation of License: Non-compliance can lead to the revocation of a financial institution's license by the Central Bank of Samoa or the Minister in charge.

  • Tipping-Off Offense: This offense can lead to a fine not exceeding 500 penalty units, a maximum of five years imprisonment, or both.

WHAT ARE THE

Largest fines for non-compliance with AML/CTF laws?

As of the current writing, there are no recorded instances of fines imposed for non-compliance with AML/CTF laws in Samoa.

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