HISTORIC PRESS RELEASE : HM Treasury acts against Money Laundering risks in Nauru [December 2001]

The press release issued by HM Treasury on 14 December 2001.

The Financial Action Task Force (FATF) has agreed that its members will implement countermeasures against Nauru to ensure that member countries? financial systems are protected from the risk of money laundering.

HM Treasury has fully supported the work of the FATF in assessing the recent legislation passed by the Nauruan authorities on 28 August 2001, and concurs with the FATF’s assessment that the legislation leaves money laundering risks unaddressed.

All UK businesses, within and beyond the financial sector, should therefore be aware that there is a significant risk that any transaction with Nauru may involve money laundering. Businesses and individuals in the UK should exercise caution when entering into business relations with Nauru domiciled persons and entities, to guard against the risk that they may be involved in money laundering.

The UK will in the next week be issuing specific guidance to financial institutions through the Joint Money Laundering Steering Group. This guidance will warn UK financial institutions to take additional measures to ensure that transactions involving Nauru domiciled institutions and persons are fully scrutinised. Unless there is convincing evidence that the transaction is legitimate in nature, the presumption should be that the institution will make a suspicious transaction report to the National Criminal Intelligence Service (NCIS) on all Nauru connected transactions.

Any other business who believes that they may be involved in a transaction that gives them cause for concern should similarly make a report to NCIS.