The Fiji Intelligence Unit has released a critical report detailing the high risk of money laundering in Fiji, stemming from the 2025 National Risk Assessment under the National Policy on Preventing Money Laundering and Terrorist Financing. The report identifies five primary criminal activities contributing to this escalating threat, with narcotics-related offenses at the forefront.
Fiji’s geographical location is noted as a significant factor, serving as a vital transshipment route for illegal drugs, particularly methamphetamines and cocaine, which are trafficked from the United States and South America to Australia and New Zealand. This situation has led to an increase in narcotics use domestically and has bolstered the presence of local organized crime groups.
The report highlights a growing market for locally produced marijuana, alongside organized crime and racketeering activities, which include narcotics trafficking, cybercrime, fraud, and human trafficking. Transnational criminal organizations, including outlaw motorcycle gangs, have reportedly increased their activity in Fiji, often facilitated by deportees from other countries.
Crimes related to taxation and customs, including smuggling operations, have also been marked as significant contributors to money laundering risks, involving tax evasion, application of false income declarations, VAT fraud, and customs duty offenses.
Environmental crimes have not been overlooked, with illegal logging, unreported and unregulated fishing, wildlife trafficking, and unauthorized mining identified as generating considerable criminal proceeds, maintaining a high and steady risk of money laundering.
Bribery and corruption remain serious concerns as well, assessed as a high but stable risk. While there are no notable cases of grand corruption, ongoing issues related to bribery, forgery, embezzlement, and fraud persist.
The assessment reveals Fiji’s complex role in the cross-border money laundering landscape, where it acts as both a transit point and a recipient of illicit funds. An analysis of money laundering investigations from 2020 to 2024 underscores a strong international connection, showcasing multiple cases that link Fiji and various foreign jurisdictions.
The report further examines 25 sectors susceptible to money laundering and terrorist financing, identifying five with a particularly high net risk: commercial banks, foreign exchange dealers, money changers, payment service providers, legal practitioners, and real estate agents. These sectors’ high transaction volumes and diverse customer profiles contribute to existing controls being insufficient to mitigate their inherent vulnerabilities.
This comprehensive risk assessment underscores the need for enhanced vigilance and proactive measures to combat money laundering in Fiji, ensuring systemic integrity and security in financial operations.
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