Samoa
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The operations of the offshore financial sector in Samoa, which began in October 1988, are legally separated from the domestic (onshore) financial sector. The size of the offshore business remains very small compared to major offshore centers. The registration of International Business Companies (IBCs) represents the largest offshore business for Samoa.

As of August 2002, there were 7,553 IBCs registered in the Samoan islands. The number of offshore banks has declined recently as a result of the authorities enacting stricter regulatory controls, with eight offshore banks currently licensed. Besides the offshore banks, there are five international insurance companies, four of which are captives (meaning that they are established by corporations to ensure their own respective group business risks). IBCs are set up and represented by trustee companies (company service providers), six of which are licensed and have offices in Samoa. These company service providers also act as representative offices for offshore banks and international insurance companies.

The supervisory authority is commonly known as the Samoa Offshore Financial Center (SOFC), which assumes the role of Registrar of International and Foreign Companies, Inspector of Offshore Banks, and Registrar of International Insurance under relevant offshore legislations. Samoa Offshore Finance Center operates as a quasi-governmental department and is administered by the Central Bank of Samoa (CBS).


Offshore Banks

For offshore banks, the Samoan authorities have recently tightened regulatory controls following the amendment to the Offshore Banking Act in 1998, and as a result the number of offshore banks has been reduced significantly over the past years. Five of the eight licensed offshore banks are captive banks and have restricted “B2” licenses that allow acceptance of deposits only from related persons and entities and not from the general public.

In licensing offshore banks, the authorities do not require that banks maintain a physical presence. In fact, only two offshore banks maintain offices in Samoa which holds records and accounts. The remaining six offshore banks have offices that are registered with company service providers which also provide directorship to such banks. Prudential regulation for offshore banks is generally lacking. The Inspector of Offshore Banks relies heavily on the

Based on its review of the legal framework for AML/CFT measures, the mission identified several areas of concern which will need to be addressed in order to bring Samoa in line with the international standards for anti-money laundering and combating the financing of terrorism. The mission acknowledges that several of these issues are already being addressed by the Samoan authorities. Overall, further modernization and review of the AML/CFT framework are desirable.


Company Service Providers

The trustee companies in Samoa primarily function as company service providers who deal with registration and administration of international business companies. The company service provider in Samoa operates under a relatively rigorous licensing system with supervision being generally effective. The Registrar under the Minister of Finance conducts vetting on “fit-and proper” of the management and ownership control.

The Registrar has significant powers to gather information and conduct on-site inspection. The PSTA also applies to trustee companies, and the Registrar has worked closely with the Money Laundering Authorities and the trustee companies in the implementation of the MLPA. The mission recommends, however, that trustee companies should conduct an enhanced level of due diligence, especially with regard to all new business transferring to the jurisdiction under redomiciliation. Moreover, the authorities should conduct regular on-site visits to the trustee companies and consider entering into specific exchange of information agreements with host country supervisors.



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