Bills aimed at credible financial rules
By Terence Malapa.
Parliament has passed a series of finance-related bills tabled by the Deputy Prime Minister (DPM) and Finance Minister, Johnny Koanapo, during the First Extraordinary Session of Parliament.
The legislative package covers several areas of Vanuatu’s financial system, including banking, taxation, international business, financial services, trusts and companies.
The reforms are intended to strengthen the country’s economic and regulatory framework, improve oversight of financial activities and support Vanuatu’s position in the international financial system.
The bills form part of a wider government legislative program, with a significant number of proposed amendments focusing on financial and economic matters. According to the Parliament website, 19 of the 28 bills originally proposed for the session involved amendments relating to financial and economic matters.
The reforms are particularly important as Vanuatu continues efforts to maintain international financial compliance, improve transparency and strengthen safeguards against money laundering and terrorist financing.
These bills are: Tax Administration (Amendment); Financial Institutions (Amendment); Financial Dealers Licensing (Amendment); International Banking (Amendment); International Companies (Amendment); Companies (Amendment); Company and Trust Service Providers (Amendment); Foundation (Amendment) Bill; Incorporated Cell Companies (Amendment); Mutual Funds (Amendment); Offshore Limited Partnerships (Amendment); Partnership (Amendment); Protected Cell Companies (Amendment); Trust Act Bill; Unit Trusts (Amendment); Virtual Assets Service Providers (Amendment); Anti-Money Laundering and Counter-Terrorism Financing (Amendment); Vanuatu Interactive Gaming (Amendment); and Mutual Assistance in Criminal Matters (Amendment).
These bills cover different parts of the financial and commercial system. Their inclusion in the legislative programme does not mean that every bill has the same purpose or that every measure directly increases government revenue.
A key objective of financial legislation is to provide clear rules for businesses, investors and financial service providers while ensuring that regulatory authorities have appropriate oversight.
Updates to banking, company, trust and investment laws can help clarify compliance obligations, improve supervision and maintain confidence in Vanuatu’s financial services sector.
Tax administration reforms are also relevant to the Government’s ability to administer tax obligations and protect public revenue. Meanwhile, legislation addressing money laundering, terrorist financing and international cooperation supports efforts to prevent the financial system from being used for criminal activities.
The virtual assets sector and international financial services also present regulatory challenges as financial products and business structures continue to evolve. Clear and effective laws can help authorities respond to those challenges while providing greater certainty for legitimate businesses.
For Vanuatu, maintaining credible financial regulation is important not only for the domestic economy but also for relationships with international financial institutions, investors and business partners.
