Nauru Passes New Anti-Money Laundering Laws

by Mary Swire, for LawAndTax-News.com, Hong Kong

11 November 2004

ABC News Online on Tuesday reported that the newly elected government of President Ludwig Scotty has acted swiftly to pass a set of bills designed to secure the jurisdiction's removal from the Financial Action Task Force's money laundering blacklist.

Three linked acts dealing with the prevention of terrorist financing, the seizure of the proceeds of crime, and the provision of international assistance with regard to criminal activity were introduced by Dr Kieren Keke, the Australian news service revealed.

The jurisdiction was last year removed from the OECD's harmful tax competition 'blacklist', following the government's effective elimination of the offshore banking sector, and its commitment to work with the OECD to improve transparency and put in place effective information exchange systems with OECD member states by December 2005.

Nauru has been in the news recently after President Scotty declared a state of emergency last month, dissolved Parliament and set an election date of October the 23rd. The move was spurred by the Speaker, Russell Kun's refusal to allow the Health Minister, Dr Keke to take his seat.

Mr Kun argued that the Health Minister was not eligible to be a member of Parliament because he was a citizen of both Nauru and Australia. Without Dr Keke in the House, however, the government was deadlocked, hence the need for the recent election.

Recommended