Tonga

New Documents

The National Reserve Bank of Tonga, which is the country’s Transaction Reporting Authority, issued the guidelines pursuant to the Money Laundering and Proceeds of Crime Act 2000.

The annual report covers supervision and regulation of financial institutions, activities regarding transaction reporting, accountability of the National Reserve Bank of Tonga, monetary policy formation, corporate governance and management of the regulator, and other related issues.

News

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Enforcement Actions

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Important Facts

  • The U.S. State Department labels Tonga as a monitored jurisdiction. The country, an archipelago in the South Pacific, is neither a financial center nor an offshore jurisdiction. There are only five commercial banks. Tonga is deemed by local officials to be vulnerable to smuggling and money laundering due to its inadequate border controls. It is not a major narcotics transit point but there are allegations that Tongan citizens have links to transnational drug cartels. However, the scale of their involvement is unknown. The largest source of hard currency earnings are remittances from Tongans living and working abroad, followed by tourism.
  • KYC Covered Entities: Banks, Tonga Development Bank, foreign exchange dealers, money lenders, money transmission services, credit unions, insurance companies and intermediaries, dealers in precious metals, accountants, lawyers, real estate agents, securities dealers, casinos, sellers of payment instruments, Retirement Fund Board, and trustees
  • STR Covered Entities: Banks, Tonga Development Bank, foreign exchange dealers, money lenders, money transmission services, credit unions, insurance companies and intermediaries, dealers in precious metals, accountants, lawyers, real estate agents, securities dealers, casinos, sellers of payment instruments, Retirement Fund Board, and trustees
  • Enhanced Due Diligence Procedures for PEPs: Foreign: Yes; Domestic: Yes
  • Money Laundering Criminal Prosecutions/Convictions: Prosecutions: N/A; Convictions: 0 (2015)
Source: 2016 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i | 2004 Methodology

Technical Effectiveness
Compliant : 0 High :
Largely Compliant : 4 Substantial :
Partially Compliant : 26 Moderate :
Non-Compliant : 18 Low :
Not-Applicable : 1

BASEL i

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TRANSPARENCY INTERNATIONAL i

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Tax Justice Network i

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