BY NED GAGAHE
Governor of the Central Bank of Solomon Islands (CBSI) says the Special Economic Zone (SEZ) Bill 2024 needs to be reviewed to ensure safeguards are in place to prevent Solomon Islands from becoming a haven for money laundering and illicit financial flows.
Appearing before the Bills and Legislation Committee, Governor Dr Luke Forau expressed concerns regarding the potential risks of money laundering in the Bill’s present form during the Committee hearing last week.
Mr Forau while acknowledging the bill’s noble intention to support the country’s development, warned that Solomon Islands is not isolated and must be cautious about the risks involved in global trade.
Forau emphasised that while the bill aims to foster economic growth, it could inadvertently open doors for money launderers, especially those from advanced economies.
“Money launderers are everywhere, and they have vast amounts of money—drug dealers, for instance, possess millions, even billions of dollars.
“They can use this window to come and clean their money under the guise of legitimate businesses,” he said.
The Governor also raised concerns about the provisions in the bill, particularly regarding the repatriation of funds.
He suggested that such flexibility could make the country more vulnerable to illicit financial activities, particularly money laundering and potential terrorist financing.
“If the SEZ continues with separate regulations, it may pave the way for money launderers, as it would allow them to repatriate proceeds without scrutiny,” Forau warned.
He further pointed out that with the country’s relatively underdeveloped status, it is crucial to ensure that the regulations do not inadvertently attract harmful activities.
Forau concluded that there is a need for a review of the bill to ensure safeguards are in place, to prevent the Solomon Islands from becoming a haven for money laundering and illicit financial flows.
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