UN General Assembly
2003

Development (OECD) listed it along with others as a non-cooperating country. The following year, Nauru’s status was further downgraded, and it was put on the list for “countermeasures” by members of FATF, not because our laws were insufficient, but because the goalposts were shifted and our failure involved a lack of capacity and capability to supervise the offshore banks registered in Nauru. In December 2002, the United States Government, in taking up FATF’s call to apply countermeasures against Nauru, announced that Nauru would be designated a “money-laundering” country under the provisions of the Patriotic Act. The highest level of sanctions would be applied, which would prohibit all commercial and financial transactions between any Nauru-registered financial institution and the United States. In May 2003 Nauru was accordingly informed and was given 30 days to show cause as to why the sanction should not be applied. Nauru submitted its comments, passed new laws in March of this year repealing the registration of offshore banks, and included a sunset clause terminating the licenses that would come into effect 30