It will be much harder to launder money through Solomon Islands, following the establishment of a Financial Intelligence Unit (FIU) within the Central Bank of Solomon Islands.

The FIU will play a key part in the prevention and detection of money laundering by gathering intelligence on the suspicious movement of money through banks and other financial institutions, and also of suspect cash dealings.

Australia is providing funding support for the Unit for its first three years, through the Regional Assistance Mission to Solomon Islands (RAMSI). A Memorandum of Understanding finalising the support was signed on Tuesday March 7 by CBSI Governor Rick Hou and RAMSI Development Coordinator Blair Exell.

Governor Hou said: “The FIU will work with financial institutions and other cash dealers to inspect financial records and investigate possible illegal transactions.” Material gathered from such operations could then be passed to law enforcement officers for follow-up.

In announcing the agreement, Blair Exell said “Establishment of the FIU demonstrates the Solomon Islands' Government commitment to the global fight against money laundering and the financing of terrorism. Through RAMSI, Australia is happy to support this Unit as part of its assistance to the Solomon Islands Governments’ fight against corruption.”

The FIU will work through the Solomon Islands Anti-Money Laundering Commission (AMLC). The AMLC was set up under the Money Laundering and Proceeds of Crime Act 2002 and includes the Attorney-General, the Commissioner of Police, the PS Ministry of Finance and the Governor of the Central Bank.

Governor Hou advised: “We have completed the first steps in establishing the FIU, including employing a financial analyst and conducting the first awareness raising workshop on money laundering in Honiara last month. We are preparing to bring into force the second Part of the Act by the end of May. This will make money laundering a criminal offence in the Solomon Islands and formally directs establishment of the FIU.”

The CBSI boss added: “Banks and casinos for the first time here in Solomon Islands will soon be required to report any suspicious transactions.”

The FIU also receives assistance through the Australian government’s Anti-Money Laundering Assistance Team (AMLAT). AMLAT was established in 2005 to provide technical assistance and training to Pacific Island countries and is part of the Australian Attorney-General's Department.

For further information, please contact:
Rick Hou (CBSI) 21791; Suzanne Bent (AusAID) 21561 ext 261