Tonga will strengthen its fight against financial criminal activities by having an evaluation done on its legal framework to combat money laundering, financing of terrorism and proliferation of weapons of mass destruction.

Government Ministries and agencies are preparing for the evaluation (2019-20) to be carried out by the Asia Pacific Group on Money Laundering (APG), which Tonga has been a member of since 2005.

Acting Attorney General ‘Aminiasi Kefu said today if Tonga does not do well after the mutual evaluation, international finance with Tonga may be limited or abolished, because there will be decreased in credibility of Tonga in combatting these crimes of money laundering, terrorism and proliferation.

“This may lead in a decrease of foreign investors investing in Tonga, or a decrease in the establishment of businesses for the employment of Tongans.”

He said the mutual evaluation process is important for Tonga so that it maintains a good standing in international finance, and also establishes that Tonga has a strong reputation of effectively implementing its legal framework on combatting money laundering and the financing of terrorism and proliferation of weapons of mass destruction.

Compliance

The evaluation will be conducted in two parts. Firstly, on whether Tonga technically complies with the recommended international standards. This involves assessing Tonga’s legislation and institutional framework, and the powers and procedures of its competent authorities to apply the recommended international standards.

The other evaluation is an assessment of how effective Tonga’s legal framework is when implemented in mitigating risks that exist within Tonga from money laundering, and terrorist and proliferation financing, he said.

Tonga’s Cabinet Committee on Money Laundering and Terrorist Financing Activities, established in 2003, is expected to lead efforts to prepare for the evaluation.

This will be jointly facilitated by the Attorney General’s Office and the National Reserve Bank of Tonga, and supported by the Ministry of Commerce, Consumers, Trade, Innovation and Labour, Ministry of Revenue and Customs, Tonga Police and the Ministry of Foreign Affairs. 

In addition, government ministries and agencies will also be partnering and relying on the critical support of financial institutions and cash dealers in their understanding and compliance with Tonga’s legal requirements on anti-money laundering and the financing of terrorism and proliferation of weapons of mass destruction. 

These include entities such as the commercial banks, money remitters, foreign exchange dealers, insurance companies, charitable trusts, lottery operators, real estate agents, precious metal dealers, lawyers, accountants, auditors, tax advisors, trusts and company service providers, and all entities covered under the Money Laundering and Proceeds of Crime Act.

Tonga first underwent its first mutual evaluation in 2009-10, where APG adopted and published Tonga's first mutual evaluation report in 2010.

Meanwhile, the adoption of the Cook Islands mutual evaluation report and the upgrading of the Vanuatu mutual evaluation report has placed these two Pacific Islands countries as two of the best in the world in implementing the international standards on combatting money laundering and the financing of terrorism and proliferation.

'Aminiasi was part of the assessment team that conducted the mutual evaluation of the Cook Islands in 2017/2018 at the last APG Plenary meeting that was held in Kathmandu, Nepal on 21 to 27 July 2018, together with five other assessors from Australia, Fiji, Samoa, Tonga, Peoples’Republic of China and Hong Kong China.