Compliance & International Standards (FATF/AML)
The VFSC International Regulatory Standard Compliance statement focuses on VFSC’s collaboration with the Asia/Pacific Group (APG), FATF, and its obligations under Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) standards:
International Regulatory Standard Compliance
As the primary regulator of non-banking financial services and products in Vanuatu, the Vanuatu Financial Services Commission (VFSC) is committed to upholding international best practices and standards in combating money laundering, terrorism financing, and other forms of financial crime.
VFSC actively participates in global and regional initiatives to strengthen its regulatory frameworks, promote transparency, and ensure compliance with international obligations.
Compliance with Global AML/CTF Standards
VFSC aligns its regulatory practices with the Financial Action Task Force (FATF) Recommendations, which set the global standard for Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) measures.
As a member of the Asia/Pacific Group on Money Laundering (APG)—a FATF-style regional body—Vanuatu undergoes regular mutual evaluations and is committed to continuous improvement of its AML/CTF framework. Furthermore, it is a member of the National Coordinating Committee (NCC) which is the government body that oversees the Nation’s responses to Anti -Money Laundering and Counter Terrorism financing issues. Through the NCC, the VFSC heads the Supervisory Working Group Team and liaise directly with the Financial Intelligence Unit (FIU) and other Stakeholders and reports to the NCC through the Commissioner.
Key Areas of Compliance and Oversight
VFSC ensures adherence to international standards through the following:
Licensing and Supervision of Designated Non-Financial Businesses and Professions (DNFBPs), including company and trust service providers (CTSPs), securities dealers, and virtual asset service providers (VASPs).
Customer Due Diligence (CDD) and Know Your Customer (KYC) obligations for all licensed entities.
Monitoring of Suspicious Transactions in collaboration with the Financial Intelligence Unit (FIU) and law enforcement agencies.
Implementation of Sanctions Regimes and targeted financial sanctions related to terrorism and proliferation financing.
Cooperation with International Bodies, including regular engagement with APG and other global partners.
Ongoing Initiatives and Reform
VFSC continues to review and enhance its regulatory framework to:
Meet FATF’s 40 Recommendations, including technical compliance and effectiveness measures
Align with evolving global financial risks and emerging threats (e.g., virtual assets and blockchain technologies)
Strengthen information-sharing mechanisms between domestic and international stakeholders
Improve transparency of beneficial ownership and corporate structures
Ensure timely reporting obligations and follow-up actions from APG Mutual Evaluations
Commitment to International Cooperation
VFSC is committed to regional and global cooperation in the fight against financial crime. Our partnership with the Asia/Pacific Group on Money Laundering (APG) and alignment with FATF standards reinforces our goal to maintain Vanuatu as a transparent, secure, and compliant jurisdiction for financial services.
VFSC continues to enhance regulatory compliance through:
Staff capacity building and technical training
Legislative reform and alignment with international instruments
Digital tools for compliance monitoring and reporting