Attorney-General Graham Leung presented the 2023 Annual Report of the Financial Intelligence Unit (FIU) to Parliament on Monday. Acting Director of the FIU, Esther Sue, described 2023 as a year filled with challenges, noting that changing financial crime patterns and the shifting focus of law enforcement agencies created a heightened demand for the FIU’s financial intelligence and expertise.
Sue emphasized the importance of the FIU’s role as an intelligence agency, stating that it must actively share financial intelligence with law enforcement to assist in the investigation and prosecution of significant financial crimes. Additionally, the FIU aids these agencies in tracking and seizing the proceeds of crime.
This year, the FIU issued 429 intelligence reports to law enforcement bodies, regulatory organizations, and government ministries. Many of these reports were generated from suspicious transaction reports submitted by various financial institutions operating in Fiji.
Furthermore, the FIU completed a comprehensive assessment of the money laundering and terrorist financing risks within Fiji’s banking sector, with the findings now available on the FIU’s website.
“As a regulatory body, the FIU aims to ensure that financial institutions in Fiji maintain robust internal systems and controls to reduce the risk of their services being exploited by criminals for purposes such as money laundering and terrorism financing,” stated Sue.
In 2023, the FIU conducted risk-based supervision of financial institutions, as well as non-financial businesses such as lawyers, real estate agents, and accountants. This included on-site assessments of compliance with anti-money laundering regulations for several real estate agents and legal practitioners, alongside offsite compliance monitoring for other financial and non-financial entities. The risk-based approach allows the FIU to focus its resources on high-risk entities amidst a large number of institutions that require oversight.
To support advancements in digital payment systems, the FIU introduced a new guideline providing requirements and guidance for financial institutions regarding the use of digital ID systems for customer due diligence or electronic Know Your Customer (eKYC).
The Acting Director of the FIU expressed gratitude for the substantial support from the Reserve Bank of Fiji, which funds the FIU, as well as all financial institutions and partner law enforcement agencies for their contributions to the FIU’s efforts and accomplishments in 2023.