Regional : Improving Finance Sector Know Your Customer Capacity in the Pacific

Sovereign Project | 56037-001

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

Project Name
Improving Finance Sector Know Your Customer Capacity in the Pacific
Project Number
56037-001
Country / Economy
  • Regional
  • Cook Islands
  • Fiji
  • Micronesia, Federated States of
  • Kiribati
  • Nauru
  • Niue
  • Palau
  • Papua New Guinea
  • Marshall Islands
  • Samoa
  • Solomon Islands
  • Tonga
  • Tuvalu
  • Vanuatu
Project Status
Active
Project Type / Modality of Assistance
  • Technical Assistance
Source of Funding / Amount
TA 10093-REG: Improving Finance Sector Know Your Customer Capacity in the Pacific
Source Amount
Technical Assistance Special Fund US$ 500,000.00
Regional Cooperation and Integration Fund US$ 1.50 million
Operational Priorities
  • OP1: Addressing remaining poverty and reducing inequalities
  • OP7: Fostering regional cooperation and integration
Sector / Subsector
  • Finance / Banking systems and nonbank financial institutions - Finance sector development

Gender
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

Impact

Likelihood of financial institutions losing bank accounts because of noncompliance with KYC requirements reduced

Costs of remittances to the Pacific DMCs moved closer to global averages

Project Outcome

Description of Outcome

Compliance of participating financial institutions with AML/CFT reporting requirements improved

Progress Toward Outcome

Implementation Progress

Description of Project 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

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Cook Islands - Nation-wide; Fiji - Nation-wide; Kiribati - Nation-wide; Marshall Islands - Nation-wide; Micronesia, Federated States of - Nation-wide; Nauru - Nation-wide; Niue - Nation-wide; Palau - Nation-wide; Papua New Guinea - Nation-wide; Samoa - Nation-wide; Solomon Islands - Nation-wide; Tonga - Nation-wide; Tuvalu - Nation-wide; Vanuatu - Nation-wide

Summary of Environmental and Social Aspects

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

Consulting Services
Individual consultants will be recruited to provide international consulting inputs. Firms will be recruited using quality and cost-based methods of selection.

Contact

Responsible ADB Officer
Singh, Shiu Raj
Responsible ADB Department
Sectors Group
Responsible ADB Division
Finance Sector Office (SG-FIN)
Executing Agencies
Asian Development Bank

Timetable

Concept Clearance
26 Apr 2022
Fact Finding
11 Sep 2022 to 23 Nov 2022
MRM
-
Approval
28 Feb 2023
Last Review Mission
-
Last PDS Update
28 Feb 2023

Funding

TA 10093-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Feb 2023 - 28 Feb 2023 31 Dec 2028 - -
Financing Plan/TA Utilization
ADB Cofinancing Counterpart Total
Gov Beneficiaries Project Sponsor Others
2,000,000.00 0.00 0.00 0.00 0.00 0.00 2,000,000.00
Cumulative Disbursements
Date Amount
19 Jun 2024 83,223.95

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Improving Finance Sector Know Your Customer Capacity in the Pacific: Technical Assistance Report Technical Assistance Reports Feb 2023

Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.


Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
Technical Assistance Coordinator Individual - Consulting Closed
Analyst Individual - Consulting Closed
Compliance Specialist Individual - Consulting Closed
Anti-money laundering Regulatory Specialist Individual - Consulting Closed
Bank Risk and Compliance Specialist Individual - Consulting Closed
Know Your Customer (KYC) Legal Expert Firm - Consulting Closed

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.