Vanuatu's measures to combat money laundering and terrorist financing

Publication details

Language

English

Country

Vanuatu

The Asia/Pacific Group on Money Laundering (APG) completed its assessment of Vanuatu's anti-money laundering and counter-terrorist financing (AML/CFT) system. The assessment is a comprehensive review of the effectiveness of Vanuatu's AML/CFT system and its level of compliance with the FATF Recommendations. 

The report was formally adopted by at the APG Annual Meeting in July 2015.  The findings of this assessment have also been reviewed and endorsed by the FATF. 

Overall, the preconditions for an effective AML/CFT system are not present in Vanuatu, including a consistent and informed understanding of money laundering and terrorist financing risk; high level political commitment; adequate financial and human resources and a formal and dedicated domestic cooperation/coordination structure. Vanuatu has increased its technical compliance with the FATF Recommendations since its 2006 assessment, but overall, compliance with the majority of the 40 Recommendations remains at non compliant or partially compliant level.  In terms of effectiveness,  Vanuatu has achieved only low levels of effectiveness. In most areas this is the result, among other factors, of an absence of policy and operational priorities and inadequate training and resources allocated to AML/CFT. 

APG-Mutual Evaluation of Vanuatu - 2015

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APG-Mutual-Evaluation-Report-Vanuatu-2015.pdf
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1022 KB
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Technical Compliance

Ratings which reflect the extent to which a country has implemented the technical requirements of the FATF Recommendations.

Vanuatu Mutual Evaluation 2015

R.1 - Assessing risk & applying risk-based approach
NC
R.2 - National cooperation and coordination
NC
R.3 - Money laundering offence
NC
R.4 - Confiscation and provisional measures
PC
R.5 - Terrorist financing offence
PC
R.6 - Targeted financial sanctions related to terrorism & terrorist financing
PC
R.7 - Targeted financial sanctions related to proliferation
NC
R.8 - Non-profit organisations
NC
R.9 - Financial institution secrecy laws
LC
R.10 - Customer due diligence
PC
R.11 - Record keeping
LC
R.12 - Politically exposed persons
LC
R.13 - Correspondent banking
LC
R.14 - Money or value transfer services
PC
R.15 - New technologies
LC
R.16 - Wire transfers
NC
R.17 - Reliance on third parties
NC
R.18 - Internal controls and foreign branches and subsidiaries
NC
R.19 - Higher-risk countries
PC
R.20 - Reporting of suspicious transactions
LC
R.21 - Tipping-off and confidentiality
LC
R.22 - DNFBPs: Customer due diligence
PC
R.23 - DNFBPs: Other measures
PC
R.24 - Transparency and beneficial ownership of legal persons
NC
R.25 - Transparency and beneficial ownership of legal arrangements
NC
R.26 - Regulation and supervision of financial institutions
PC
R.27 - Powers of supervisors
PC
R.28 - Regulation and supervision of DNFBPs
PC
R.29 - Financial intelligence units
LC
R.30 - Responsibilities of law enforcement and investigative authorities
C
R.31 - Powers of law enforcement and investigative authorities
PC
R.32 - Cash couriers
LC
R.33 - Statistics
NC
R.34 - Guidance and feedback
PC
R.35- Sanctions
PC
R.36 - International instruments
PC
R.37 - Mutual legal assistance
PC
R.38 - Mutual legal assistance: freezing and confiscation
NC
R.39 - Extradition
PC
R.40 - Other forms of international cooperation
NC

C = compliant   |   LC = largely compliant     |   PC = partially compliant   |   NC = non-compliant

Effectiveness

Ratings that reflect the extent to which a country's measures are effective. The assessment is conducted on the basis of 11 immediate outcomes, which represent key goals that an effective AML/CFT system should achieve.

Ratings that reflect the extent to which a country's measures are effective. The assessment is conducted on the basis of 11 immediate outcomes, which represent key goals that an effective AML/CFT system should achieve.

Vanuatu Mutual Evaluation 2015

IO1
LE
IO2
LE
IO3
LE
IO4
LE
IO5
LE
IO6
LE
IO7
LE
IO8
LE
IO9
LE
IO10
LE
IO11
LE

HE = high level of effectiveness   |   SE = substantial level of effectiveness    |   ME = moderate level of effectiveness   |   LE = low level of effectiveness

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