Nauru

People

Nauru does not appear to be a source, destination or transit country for human trafficking, and the risk of the problem emerging in the short and medium term is minimal.

Similarly, no information is available that confirms human smuggling activity, but Nauru’s geographical location and history as a site for offshore detention facilities indicate a potential for smuggling. There is no information confirming extortion or protection racketeering activity in Nauru.

Trade

There is no evidence of arms trafficking in Nauru, which has strictly enforced laws banning the importation of explosives, firearms and weapons.

In Naura, the limited trade in counterfeit goods mainly involves luxury products, such as watches from high-end brands. The country is a signatory to the Paris and Berne Conventions and has taken steps to address intellectual property violations, but effective enforcement remains inadequate, which leaves Nauru vulnerable to potential future threats from this market. There is no confirmed large-scale illicit trade in excise goods in Nauru, but illicit imports of tobacco products, mainly from Australia and Fiji, affect the legal market.

Environment

As a result of Nauru’s extensive phosphate mining history and resulting environmental degradation, inland flora resources are extremely limited, making flora-related crimes highly improbable. Marine flora remains an area of concern, although little information is available on related crimes.

Specific data on illegal fishing is unavailable, but the country’s limited resources for patrolling its vast exclusive economic zones increase the risks of unregulated exploitation and corruption.

Nauru’s phosphate mining industry, which resumed in the mid-2000s after an initial decline in the 1980s, has led to environmental degradation and economic instability. However, there is no direct evidence of criminal activities within the mining sector.

Drugs

Authorities enforce strict laws against drug possession, importation and exportation, with penalties that include fines and imprisonment. In Nauru, cannabis use, cultivation and trade are illegal, although some attempts to smuggle cannabis (primarily from Fiji) have been reported. No substantial trade in synthetic drugs or cocaine exists in Nauru. However, the country’s geographic location makes it vulnerable to regional drug trafficking flows. Limited methamphetamine trafficking from Hong Kong, China has been reported, but consumption remains low compared to other Pacific nations. The number of reported drug-related cases has increased slightly, mainly because of improved reporting mechanisms and law enforcement efforts. There is no evidence of a heroin trade in Nauru.

Cyber Crimes

Incidents of cyber-dependent crimes in Nauru are historical and anecdotal due to the country’s isolation, low internet access, and small population and economy.

Financial Crimes

Nauru’s history as a tax haven and centre for offshore banking has made financial crimes, particularly tax evasion, a persistent concern. Although the extent of financial crime remains unclear, the absence of strong financial regulations presents vulnerabilities that could be exploited in the future.

Criminal Actors

There is no evidence of mafia-style groups or fluid, opportunistic criminal networks operating in Nauru. This is due to the country’s size and lack of a significant illicit economy

Although no major corruption scandals were recorded during the review period, Nauru continues to grapple with corruption, bribery and money laundering that often involve state representatives. The political and economic landscape relies heavily on international aid and foreign agreements, which create opportunities for illicit financial activities. Certain landowners reportedly benefit from the country’s agreement with Australia to house refugees and asylum seekers, which could lead to conflicts of interest and financial exploitation. However, there is no evidence of state-embedded actors engaging in transnational organized crime. Governance reforms have been introduced, but enforcement gaps persist due to limited resources and institutional capacity.

Nauru’s heavy dependence on international aid and economic partnerships makes it susceptible to foreign influence. External actors, particularly donor nations, wield considerable influence over national policies and economic decisions. Although there is no direct evidence of foreign actors engaging in criminal activities within Nauru, the country’s economic vulnerabilities increase the risk of external manipulation. In the past, particularly during Nauru’s time as an offshore banking hub, the presence of foreign-owned financial institutions highlighted the potential risks of external economic players influencing domestic regulatory frameworks.

No available data indicates that private-sector actors are involved in organized criminal activities in Nauru. However, concerns persist regarding financial transparency and corporate governance, particularly in relation to money laundering and the handling of foreign investments.

Leadership and governance

Nauru’s system grants its citizens political rights and civil liberties, but electoral manipulation and government transparency are concerns. Although the country is considered politically free, reports indicate that opposition figures have been sidelined, and corruption is a recurring issue. Given Nauru’s reliance on international donors, particularly Australia, foreign influence continues to shape national policies, sometimes leading to governance vulnerabilities.

Despite being a signatory to the UN Convention against Corruption since 2012, limited financial resources and law enforcement capacity constrain Nauru’s ability to combat corruption. Institutional oversight is weak, and regulatory enforcement is inconsistent. Government transparency is further hindered by strict media controls, which limit public accountability and scrutiny of official conduct. The country does not have a law granting public access to government information, and officials are not mandated to disclose their assets or income. Underscoring the systemic weaknesses in fiscal oversight is a prolonged lapse in government audits, which is largely attributed to a shortage of qualified personnel.

Nauru actively participates in various international treaties and conventions aimed at combating transnational crime, corruption and human rights violations. However, its international cooperation efforts are often shaped by the priorities of donor nations, particularly Australia, which continues to exert significant influence over the country’s legal and security policies. In 2024, Nauru’s diplomatic shift to recognize China over Taiwan raised concerns about the future of regional collaborations. Nauru has also taken steps to improve maritime security through partnerships, such as with the Pacific Islands Forum Fisheries Agency and the UN Office on Drugs and Crime (UNODC), although resource constraints limit practical enforcement.

Nauru has a legal framework on organized crime that aligns with international standards, incorporating global agreements and model laws into its domestic legislation. However, practical enforcement remains uncertain, which is probably due to minimal organized crime activity and limited institutional capacity. Although the legislative framework reflects global best practices, its implementation is hampered by financial constraints, insufficient training and a lack of qualified personnel. National policy is strongly influenced by foreign donors, resulting in both legal advancements and regressions, particularly in areas such as human rights and asylum policy. Consequently, effective governance and consistent law enforcement continue to depend on international support.

Criminal justice and security

Nauru’s judicial system comprises multiple levels, including the Supreme Court and Court of Appeals, and judges are appointed by the president. The judiciary is generally independent in civil matters, allowing individuals and organizations to seek redress for rights violations, but concerns have been raised about undue government influence in politically sensitive cases. Nauru’s prison system consists of a single facility that accommodates inmates of various risk levels. Although prison conditions meet basic international standards, capacity limitations and resource constraints hinder rehabilitation efforts. Programmes such as vegetable farming and cleaning are available, but broader reintegration initiatives are absent.

Law enforcement in Nauru faces significant challenges due to its small size and limited capacity. The police force operates under civilian oversight, and mechanisms exist to investigate misconduct. However, resource constraints hinder the formation of specialized organized crime units. Nauru relies heavily on external partnerships for criminal investigations, with support from Australia, New Zealand and other Pacific Island nations. The Nauru–Australia Policing Partnership plays a crucial role in strengthening front-line capabilities, gathering intelligence and carrying out investigations. In addition, Nauru has a cybercrime unit within its police force that monitors digital threats and prosecutes offenders.

Nauru is relatively resilient to transnational organized crime due to its small size and limited infrastructure. The country has no deep-water port, which restricts large-scale illicit maritime activity, and there is no evidence that Nauru serves as a major transit hub for the regional human trafficking and smuggling routes. However, weak border security capabilities and reliance on Australian assistance could pose long-term risks. Past cyberattack against government sites have exposed vulnerabilities in digital security, underscoring the need for stronger cybersecurity measures.

Economic and financial environment

Nauru was regarded as a financial secrecy hub and an offshore banking centre until international pressure forced its closure in the early 2000s. Since then, the country has taken steps to strengthen its anti-money laundering (AML) framework by establishing clearer regulatory oversight and continuing the mandate of the Financial Intelligence Unit. Currently, Nauru is considered a low-risk jurisdiction for money laundering and terrorist financing, as reflected in its national risk assessments. To enhance financial transparency, the country has implemented new legislation, joined the Asia/Pacific Group on Money Laundering and entered into cooperation agreements with the Australian Transaction Reports and Analysis Centre. Yet despite these measures, gaps remain in preventing illicit financial flows, particularly in crowdfunding and online gambling, and in the oversight of targeted financial sanctions. However, to date, no reports of suspicious transactions have been filed with the Nauru Financial Intelligence Unit.

Nauru’s economic regulatory environment is fragile due to its heavy dependence on phosphate mining and foreign aid. The depletion of phosphate reserves has left the economy vulnerable, with public sector employment dominating the workforce. The closure of the Australian refugee-processing centre, once a significant revenue source, has further exacerbated economic uncertainties and heightened dependence on external aid. The Constitution protects property rights, but the business environment remains weak due to corruption, limited financial institutions and a lack of economic diversification. Although Nauru has attempted to attract foreign investment, regulatory inefficiencies and governance challenges deter potential investors.

Civil society and social protection

Victim and witness support structures in Nauru are underdeveloped, mainly because of limited financial and technical capacity. Although legislation provides protections, few practical mechanisms are in place to support people affected by crime. Cultural norms often favour informal conflict resolution, leading to the under-reporting of abuse cases. Refugees and asylum seekers housed in Nauru are particularly vulnerable, with reports of poor living conditions and inadequate access to healthcare and legal protection. Discrimination remains a persistent issue, particularly against women and individuals belonging to minority groups, and reports of human rights abuses in the refugee processing system continue to surface.

Crime prevention efforts in Nauru are minimal. The police force occasionally engages with community leaders to discuss crime statistics and encourage prevention efforts, but such initiatives are limited.

Nauru has a weak civil society, with few active organizations dedicated to monitoring government accountability or advocating for crime prevention. The country does not have a national non-governmental organization (NGO) registry, and labour unions are virtually non-existent. Some NGOs advocate for women’s rights and community development, but none focus on organized crime due to the country’s low crime rates. Media freedom is highly restricted, with the government exerting control over news outlets. The country lacks independent daily newspapers, and foreign journalists face barriers, including exorbitant visa fees and selective entry restrictions. Further deterring investigative journalism are laws that impose strict penalties for defamation. The suppression of civil society actors and media limits transparency and public scrutiny, exacerbating governance weaknesses.