FATF AML Deficiency List
Non - Compliance with FATF MER Recommendations
Offshore Financial Center
Weakness in Government Legislation to combat Money Laundering
Corruption Index (Transparency International & W.G.I.)
Niue is not on the FATF List of Countries that have been identified as having strategic AML deficiencies
Compliance with FATF Recommendations
The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Niue was undertaken by the Financial Action Task Force (FATF) in 2012. According to that Evaluation, Niue was deemed Compliant for 3 and Largely Compliant for 10 of the FATF 40 + 9 Recommendations. It was Partially Compliant or Non-Compliant for 5 of the 6 Core Recommendations.
US Department of State Money Laundering assessment (INCSR)
Niue 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: -
Niue is not a regional financial center and has no free trade zones. Niue is a self-governing democracy, operating in free association with New Zealand. The Government of Niue relies heavily on New Zealand to assist with external and economic affairs. The country has experienced a significant decline in population, largely from the emigration of its population to New Zealand.
There are no international sanctions currently in force against this country.
BRIBERY & CORRUPTION
Rating (100-Good / 0-Bad)
Transparency International Corruption Index N/A
World Governance Indicator – Control of Corruption N/A
The economy suffers from the typical Pacific island problems of geographic isolation, few resources, and a small population. The agricultural sector consists mainly of subsistence gardening, although some cash crops are grown for export. Industry consists primarily of small factories for processing passion fruit, lime oil, honey, and coconut cream. The sale of postage stamps to foreign collectors is an important source of revenue.
Government expenditures regularly exceed revenues, and the shortfall is made up by critically needed grants from New Zealand that are used to pay wages to public employees. Economic aid allocation from New Zealand in FY13/14 was US$10.1 million. Niue has cut government expenditures by reducing the public service by almost half.
The island in recent years has suffered a serious loss of population because of emigration to New Zealand. Efforts to increase GDP include the promotion of tourism and financial services, although the International Banking Repeal Act of 2002 resulted in the termination of all offshore banking licenses.
Agriculture - products:
coconuts, passion fruit, honey, limes, taro, yams, cassava (manioc, tapioca), sweet potatoes; pigs, poultry, beef cattle
handicrafts, food processing
Exports - commodities:
canned coconut cream, copra, honey, vanilla, passion fruit products, pawpaws, root crops, limes, footballs, stamps, handicrafts
Exports - partners:
Germany 25%, Belgium 11%, United Kingdom 8%, France 8%, Italy 4%, United States 4% (2014)
Imports - commodities:
food, live animals, manufactured goods, machinery, fuels, lubricants, chemicals, drugs
Imports - partners:
Germany 16%, Belgium 10%, China 9%, United States 7%, United Kingdom 7%, Russia 5%, France 4%, Norway 4% (2014)
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