PLN joins the business community to welcome the removal of Vanuatu from the list of high-risk jurisdictions by the Financial Action Task Force (FATF). FATF publicly lists countries that it considers weak in anti-money laundering and combating of terrorism financing and Vanuatu faced some flak after being placed on this list of high-risk jurisdictions in January 2016
Removal from the grey list can often make a jurisdiction a more attractive investment destination. For Vanuatu it should also foster enhanced trade and banking relationships with foreign countries. However, just how long it will take for this news to filter down to the banking world outside of Vanuatu remains to be seen. Strengthening of the powers granted to the Financial Intelligence Unit and introducing more disclosure and reporting requirements have helped achieve this status for Vanuatu.
Papua New Guinea was also removed from this list in 2016 and after taking considerable measures to combat money laundering and terrorist financing.
If you are doing business in the Pacific and would like more information on anti-money laundering rules and how it affects your business, contact us at PLN.