Regional: Improving Finance Sector Know Your Customer Capacity in the Pacific
The knowledge and support technical assistance (TA) will facilitate improvements to 'know your customer' (KYC) processes in participating Pacific Developing Member Countries (DMCs). Papua New Guinea, Samoa, Solomon Islands and Vanuatu will participate in the TA to improve compliance with international requirements for anti-money laundering and counter financing of terrorism (AML/CFT). The TA will work with participating financial institutions and regulatory agencies in the four countries to support the rollout of a technology-based platform to facilitate the standardization of workflows for reporting entities. It will enhance KYC based on risk assessments and consistent information sharing with partner financial institutions and regulators. The TA will facilitate the development of an appropriate legal and regulatory framework and support consistent guidance on required standards and workflows for financial institutions.
Project Details
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Project Officer
Bharat, Vimlesh Vikash
Pacific Department
Request for information -
Country/Economy
Regional -
Sector
- Finance
| Project Name | Improving Finance Sector Know Your Customer Capacity in the Pacific | ||||||
| Project Number | 56037-001 | ||||||
| Country / Economy | Regional Papua New Guinea Samoa Solomon Islands Vanuatu |
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| Project Status | Proposed | ||||||
| Project Type / Modality of Assistance | Technical Assistance |
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| Source of Funding / Amount |
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| Strategic Agendas | Inclusive economic growth Regional integration |
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| Drivers of Change | Governance and capacity development Knowledge solutions Partnerships Private sector development |
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| Sector / Subsector | Finance / Banking systems and nonbank financial institutions - Finance sector development |
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| Gender Equity and Mainstreaming | No gender elements | ||||||
| Description | The knowledge and support technical assistance (TA) will facilitate improvements to 'know your customer' (KYC) processes in participating Pacific Developing Member Countries (DMCs). Papua New Guinea, Samoa, Solomon Islands and Vanuatu will participate in the TA to improve compliance with international requirements for anti-money laundering and counter financing of terrorism (AML/CFT). The TA will work with participating financial institutions and regulatory agencies in the four countries to support the rollout of a technology-based platform to facilitate the standardization of workflows for reporting entities. It will enhance KYC based on risk assessments and consistent information sharing with partner financial institutions and regulators. The TA will facilitate the development of an appropriate legal and regulatory framework and support consistent guidance on required standards and workflows for financial institutions. The TA is consistent with (i) the objectives of Asian Development Bank's Pacific Approach, 2021-2025 of promoting regional cooperation and integration and facilitating the development of the finance sector in Pacific DMCs, (ii) ADB's Strategy 2030, and (iii) Sustainable Development Goals. | ||||||
| Project Rationale and Linkage to Country/Regional Strategy | 1.High costs of remittances to the Pacific; 2.Poor sources of data for Finance Sector customer due diligence; and 3. Gaps in AML/CFT Frameworks |
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| Impact | Costs of remittances to the Pacific Islands are reduced to global averages Likelihood of financial institutions losing bank accounts because of noncompliance with KYC requirements reduced |
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| Outcome | Compliance of participating financial institutions with AML/CFT reporting requirements improved |
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| Outputs | Existing identity verification databases improved, and linkage utility established Technology platform for KYC facility is implemented Legal and regulatory diagnostics and reforms to enable the use of KYC facility in Pacific DMCs supported |
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| Geographical Location | Papua New Guinea - Nation-wide; Samoa - Nation-wide; Solomon Islands - Nation-wide; Vanuatu - Nation-wide | ||||||
| Summary of Environmental and Social Aspects | |
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| Environmental Aspects | |
| Involuntary Resettlement | |
| Indigenous Peoples | |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | Consultations with government and finance sector stakeholders are being conducted. Fact-finding missions to PNG, Samoa, Solomon Islands and Vanuatu to be carried out from September to October 2022 to establish the technical support ADB could provide for improving the finance sector know your customer capacity in the participating countries. |
| During Project Implementation | |
| Business Opportunities | |
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| Consulting Services | Individual consultants will be recruited to provide international consulting inputs. Firms will be recruited using quality and cost-based methods of selection. |
| Responsible ADB Officer | Bharat, Vimlesh Vikash |
| Responsible ADB Department | Pacific Department |
| Responsible ADB Division | Pacific Liaison and Coordination Office in Sydney, Australia |
| Executing Agencies |
Asian Development Bank |
| Timetable | |
|---|---|
| Concept Clearance | 26 Apr 2022 |
| Fact Finding | 11 Sep 2022 to 23 Nov 2022 |
| MRM | - |
| Approval | - |
| Last Review Mission | - |
| Last PDS Update | 02 Dec 2022 |
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