Enforcement of AML&CTF Obligations
The Anti-Money Laundering and Counter-Terrorism Financing (AML&CTF) framework empowers the Vanuatu Financial Intelligence Unit (FIU) to monitor and enforce compliance by reporting entities.
Overview of Enforcement
Under the AML&CTF Act, the FIU is mandated to ensure that reporting entities comply with their legal obligations to detect and deter money laundering, terrorism financing and related financial crimes.
Enforcement is risk-based and proportionate. The FIU focuses on serious, systemic or repeated non-compliance, while also supporting entities to strengthen their compliance frameworks through guidance and engagement.
FIU Enforcement Powers
The AML&CTF Act provides a range of powers that enable FIU officers to:
- Conduct on-site and off-site compliance examinations of reporting entities.
- Request and obtain information, documents and records relevant to AML&CTF compliance.
- Assess internal controls, policies, procedures and risk assessments.
- Issue directions to remedy identified deficiencies within specified timeframes.
Types of enforcement action
Where non-compliance is identified, the FIU may take one or more of the following actions, depending on severity and risk:
- Issue an administrative compliance direction
- Issue a formal warning under section 50B
- Issue a penalty notice under section 50C
- Accept an enforceable undertaking under section 50D and seek an order from the Court for breach of that undertaking under section 50E
- Seek a performance injunction from the Court under section 50F
- Seek a restraining injunction from the Court under section 50G
- Publish a notice of non-compliance under section 50H
- Direct a reporting entity to remove a director, manager, secretary or other officer under section 50I
Non-Compliance and Expectations
Reporting entities must ensure that their AML&CTF programmes are fully implemented and kept up to date. Examples of non-compliance may include:
- Failure to register with the FIU as a reporting entity.
- Failure to appoint and resource an AML&CTF Compliance Officer.
- Inadequate customer due diligence or beneficial ownership identification.
- Weak ongoing monitoring of business relationships and transactions.
- Failure to submit required reports (e.g. STRs, CTRs) to the FIU.
The FIU expects senior management and boards to take ownership of AML&CTF compliance, allocate sufficient resources, and respond promptly to any issues identified through examinations or other supervisory activities.
Co-operation and Self-Disclosure
Co-operation with the FIU is a key factor considered in enforcement decisions. Reporting entities that proactively identify and self-report significant compliance issues, and that implement robust remediation plans, may receive a more favourable consideration of their case.
Entities are strongly encouraged to contact the FIU early if they become aware of serious breaches or control failures, or if they require guidance in implementing corrective measures.
FIU Enforcement Role
The FIU conducts compliance examinations, assesses the effectiveness of AML&CTF controls, and takes enforcement action where serious or repeated non-compliance is identified.
Reporting entities are expected to cooperate fully with FIU examinations and respond promptly to any remedial directions issued.
Key Documents
Enforcement Actions & News
The FIU may publish information on significant enforcement actions and supervisory findings.
View FIU News