Tax crimes accounted for approximately 86 percent of the transaction value linked to case dissemination reports by Fiji’s Financial Intelligence Unit (FFIU) in 2024, while MPs have raised concerns over whether Fiji has the capacity to effectively trace money linked to drug trafficking and organised crime.
The FFIU functions as both a regulatory body and a national financial intelligence unit to protect Fiji's financial system from criminal abuse.
Opposition MP Rinesh Sharma raised this issue during Parliament’s debate on the Standing Committee on Economic Affairs’ review of the FFIU’s 2024 Annual Report.
Sharma says tax crimes accounted for 26 percent of case dissemination reports by number, but represented approximately 86 percent of the transaction value associated with those reports.
Insert: Sharma - Every scam is every family being robbed Sept 28
He says this highlights the significant financial exposure associated with tax-related offences and the need for stronger analysis and enforcement.
He has proposed a series of measures to strengthen Fiji’s ability to monitor and trace money linked to financial and organised crime.
Sharma is calling for amendments to the Financial Transactions Reporting Act to cover emerging areas including virtual assets and cryptocurrency exchanges, mobile money, digital wallets, gold and precious metal dealers, motor vehicle dealers and other high-value traders.
He says the amendments should also establish a beneficial ownership register, increase penalties and require agencies receiving financial intelligence to report back to the Fiji Financial Intelligence Unit on the outcome of referrals within 90 days.
Sharma is also calling for increased funding for the FFIU, including doubling its analytical capacity to clear the backlog of suspicious transaction reports within 12 months.
Sharma is further calling for greater use of the Proceeds of Crime Act and the introduction of unexplained wealth orders to help trace and recover proceeds of crime.
He says recovered funds should be directed towards areas including drug rehabilitation, HIV response and frontline policing.
Sharma also wants stronger supervision of high-risk professionals, including lawyers, accountants and real estate agents, with on-site examinations at least once every three years and greater use of administrative penalties.
He says Fiji also needs to strengthen its borders by improving cash declaration measures at airports and ports and increasing scanning and surveillance at marinas and remote jetties.
Sharma also questioned whether Fiji’s financial intelligence system is sufficiently equipped to follow the proceeds of organised crime and drug trafficking.
He referred to major drug seizures and says proceeds from illicit activities can potentially move through bank accounts, businesses, vehicles, land and property.
Sharma says Parliament is unable to establish how many investigations, prosecutions, convictions and asset recoveries resulted from intelligence produced by the FFIU.
Meanwhile, the FFIU received 559 suspicious transaction reports in 2024 and analysed 304, leaving 255 reports outstanding.
Sharma says the unit’s capacity needs to be strengthened so the outstanding reports can be cleared within 12 months.
He is also calling for stronger links between the National Intelligence Bureau, FICA, the Director of Public Prosecutions and the Fiji Police Force through a shared case-management system.
Sharma has proposed amendments to the Financial Transactions Reporting Act to address emerging areas including virtual assets, cryptocurrency exchanges, mobile money, digital wallets, gold and precious metal dealers, motor vehicle dealers and other high-value traders.
He also called for greater use of proceeds-of-crime legislation, unexplained wealth orders and stronger supervision of high-risk sectors.
Opposition MP Faiyaz Koya also raised concerns over the growing complexity of financial crime, including the use of cryptocurrency such as Bitcoin.
Koya says additional funding, training and capacity building will be needed to ensure the FFIU can provide the intelligence required by Police and other agencies dealing with transnational crime and drug-related offences.
While presenting the committee’s review, Chair and Assistant Minister in the Office of the Prime Minister Sakiusa Tubuna says the central concern was that intelligence generated by the FFIU was not always translating into the outcomes being sought.
Tubuna says the committee found there was no systematic feedback showing what happened to intelligence after it was disseminated, including whether it resulted in investigations, prosecutions, convictions or asset recoveries.
He says stronger coordination between the FFIU and recipient agencies, together with a formal feedback mechanism, is needed to ensure intelligence contributes to enforcement action.
The motion to note the review of the FFIU 2024 Annual Report was agreed to unanimously in parliament.
