FATF Status

Fiji is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Fiji was undertaken in 2023. According to that Evaluation, Fiji was deemed Compliant for 13 and Largely Compliant for 21 of the FATF 40 Recommendations. ​It remains Highly effective for 0 and Substantially Effective for 0 of the Effectiveness  & Technical Compliance ratings.

APG Yearly Typologies Report  -  2017

Emerging Trend: ATM Skimming

Cases were brought to the attention of the FIU involving foreign nationals who obtained customers bank card details by fraudulent means using ATM and EFTPOS skimming devices. The Director of the FIU stated in a press release that there was an increase in the number of skimming cases since June 2015. A major incident occurred in December 2015 that affected more than 500 credit and debit cardholders. An attempt to conduct ATM skimming in January 2016 was successfully foiled.

In August 2016, the Fiji FIU received information that three Asian nationals were using stolen and counterfeit Visa and MasterCard cards at BSP ATMs in Tonga and Samoa. Two of the Asian nationals were in custody in Samoa whilst the third national reportedly left for Fiji. The trend of ATM skimming appears to have emerged not only in Fiji but across the Pacific.

Continuing Trend:  Advance Fee Fraud and Tax Evasion

The Fiji FIU issued 6 alert notices to commercial banks and money remittance service providers to conduct enhanced due diligence procedures for suspected possible advance fee fraud, lottery scam related remittances and email spoofing activities. The Fiji FIU continued to receive cases related to unsolicited emails promising attractive job opportunities, payment of lottery awards, inheritance of large amounts of funds, lucrative investment opportunities and other “get-rich-quick” schemes.

The Fiji FIU continues to note STR cases for possible tax evasion, such as the use of family members (including minors) personal bank accounts to hide business proceeds.

US Department of State Money Laundering assessment (INCSR)

Fiji was deemed a ‘Monitored’ Jurisdiction by the US Department of State 2016 International Narcotics Control Strategy Report (INCSR). Key Findings from the report are as follows: -

The Republic of Fiji is a small island state with a population of less than one million. It has significant natural resources and is among the most developed of the Pacific island nations. It is not a regional financial center but serves as a regional hub for transportation and shipping for other Pacific island nations.  Currently, there are no operating casinos.

Fiji’s geographical location makes it a potential staging point for criminal activities in Australia and New Zealand. Cross-border criminal gangs involving individuals from Asian countries are alleged to operate in Fiji.

To encourage investment and create economic opportunities in Fiji’s rural Northern and Maritime Island regions, the government declared certain areas as tax free regions. Benefits include a multi-year corporate tax holiday and import duty exemption on raw materials, machinery, and equipment for initial setup. There is also a tax free region in the North East of Viti Levu targeting agriculture, dairy, and other new investments.

EU Commission Tax Blacklist

On March 12, 2019, the EU Commission confirmed that Fiji had not delivered on their commitments since the first blacklist adopted in 2017 and, therefore, it will be placed on the EU Tax Blacklist.

Rating                                                                           (100-Good / 0-Bad)

Transparency International Corruption Index                           52

World Governance Indicator – Control of Corruption              65

Fiji has traditionally been the economic, transportation, and academic hub of the South Pacific islands. The economy is experiencing a strong recovery and rebound after the sharp contraction caused by the COVID-19 pandemic. The recovery is driven by the return of tourism and increased consumption spending. Following an estimated growth of 15.6 percent in 2022, the economy is estimated to expand by 6.0 percent in 2023. The government anticipates that the economy will rebound to a pre-pandemic level by 2024, but its outlook is vulnerable to continuing geopolitical tensions, threats of natural disaster and the government’s large public debt. As at July 2022, the public debt exceeded 90 percent of Fiji’s GDP. The government welcomes foreign investment and parliament passed the Investment Act 2021 to improve the ease of doing business in Fiji. Investment activity improved in 2022 and is expected to pick up following the peaceful transition of government after general elections were held in 2022. U.S. exports to Fiji totaled over $64 million in 2022. The United States is Fiji’s top export market. In 2022, U.S. consumers bought over $288 million in Fijian goods and services.

Fiji has trade and investment potential and offers incentives to encourage investments in agriculture, residential housing development, energy, audio & visual, retirement village/aged care facilities, health sector, tourism, manufacturing, and the information communication technology (ICT)/business process outsourcing (BPO) sector.

Country Links

Fiji Finanical Intelligence Unit (Fiji-FIU )

Reserve Bank of Fiji