Samoa Compliance Report

Regulatory Overview

Regulatory Status

Regulators have not addressed crypto; legal status ambiguous

Key Regulator(s)

Central Bank of Samoa, Samoa Law Reform Commission, Ministry of Finance

Primary Legislation

Proceeds of Crime Act 2007 (as amended): This is the primary legislation for AML, Proceeds of Crime Act 2007, Financial Institutions Act 1998 (as amended): This Act governs the licensing and, VASP Act 2020

Travel Rule

Not adopted

Key Facts

• aml Money Laundering Prevention Amendment Act 2021: This crucial amendment specifically expanded the scope of the MLPA 2007 to include Virtual Asset Service Providers (VASPs) as "financial institutions" or "reporting entities," bringing them under the AML/CFT obligations. This aligns Samoa with FATF Recommendation 15 on new technologies. Money Laundering Prevention Regulations 2008: These regulations provide more detailed rules and procedures for implementing the MLPA. Financial Intelligence Unit Act 2007: Establishes the Financial Intelligence Unit (FIU) and outlines its powers and functions. Prevention and Suppression of Terrorism Act 2002 (PSTA 2002): This Act provides the legal basis for preventing and suppressing terrorism financing, including the freezing of assets of designated terrorist individuals and entities as mandated by UN Security Council Resolutions. Exchange between virtual assets and fiat currencies. Exchange between one or more forms of virtual assets. Transfer of virtual assets. Safekeeping and/or administration of virtual assets or instruments enabling control over virtual assets.
• enforcement Issuing Public Warnings and Advisories: Highlighting the risks associated with cryptocurrencies, stating they are not legal tender, and advising against their use for domestic transactions or investment. Clarifying Regulatory Status: Emphasizing that no local entities are licensed or authorized to deal in cryptocurrencies within Samoa's jurisdiction. Maintaining an AML/CFT Framework: While virtual assets are generally outside the regulated financial system, any illicit financial activity using them would fall under general anti-money laundering and counter-financing of terrorism (AML/CFT) laws, but there haven't been public reports of specific crypto-related AML/CFT prosecutions in the last three years. Proactive Warnings: The regulators' strong warnings may have deterred widespread local adoption or the establishment of crypto businesses without proper authorization. Lack of Domestic Licensing: Since no entities are licensed, there are fewer specific regulatory conditions to violate, leading to fewer enforcement actions typically seen in regulated markets. Focus on Consumer Protection: The primary goal seems to be protecting Samoan consumers and maintaining financial stability by discouraging involvement with unregulated crypto activities. Central Bank of Samoa (CBS) - Public Notice on Virtual Currencies (2018, reaffirmed consistently): Regulator Name: Central Bank of Samoa (CBS)
• general Financial Services Act 2011 Securities Act 1984 (or a subsequent consolidation/amendment) Shares or Stock: Representing ownership in a company. Debentures, Bonds, or Notes: Representing a debt obligation. Units in a Collective Investment Scheme: Interests in a fund where money is pooled for investment. Investment Contracts: This is the broad category where most security tokens would fall. While the Act might not define "investment contract" as extensively as U.S. courts have, the underlying intent is to capture arrangements where: An investment of money is made. In a common enterprise.
• licensing Exchanges: There is no framework for licensing crypto-to-fiat or crypto-to-crypto exchanges. Custody Providers: No specific license for virtual asset custody. Payment Processors: If a payment processor facilitates transactions involving virtual assets, it would not fall under a specific VA license. If it also deals with fiat currency and cross-border remittances, it might fall under the general financial services laws, which are stringent. Licensing Regime: Not established for VASPs. Registration Regime: Not established for VASPs. Capital Requirements: No specific capital requirements for VASPs. For traditional financial institutions licensed under the Financial Institutions Act, substantial capital requirements exist, but these are not currently applied to crypto businesses directly. AML/KYC Requirements: This is the most crucial area where virtual asset service providers would face obligations. Samoa has a robust AML/CFT framework, primarily governed by the Proceeds of Crime Act 2007 and supervised by the Financial Intelligence Unit (FIU). While not explicitly listing "virtual asset service providers," the definitions of "financial institution" and "designated non-financial businesses and professions (DNFBP)" under the Act are broad enough that entities dealing with virtual assets could be interpreted as subject to AML/CFT obligations if their activities constitute dealing in "funds" or "property."

Sources

• https://www.fiu.gov.ws/
• https://www.ifsa.gov.ws/
• https://www.paclii.org/ws/legis/consol_act/mlpa2007267/
• https://www.paclii.org/ws/legis/consol_reg/mlpr2017369/
• https://www.paclii.org/ws/legis/consol_act/pasota2002344/
• https://fsra.gov.ws/
• https://www.sfsa.ws/
• https://www.cbs.gov.ws/
• https://www.parliament.gov.ws/laws/
• https://www.cbs.ws/
• http://www.palemene.ws/index.php/legislation/statutes/