People

There is no evidence to suggest that human trafficking is a criminal market of any significant scale in Nauru. The country does not appear to be a source, destination or transit country and the risk of the problem emerging in the short and medium term is very minimal.

Similarly, evidence of human smuggling in Nauru is scarce. While the country is situated near the human smuggling route from East Asia to Fiji, there have been no reports of this crime. There is no information confirming the existence of extortion and protection racketeering in recent years.

Trade

There is no evidence of arms trafficking in Nauru. There are no privately owned legal or illegal firearms in the country, and no evidence of manufacturing facilities. Imports of explosives, firearms and weapons are prohibited.

Furthermore, there is no substantial indication of a significant market for counterfeit goods in Nauru. However, recently, there has been an increase in the trade of counterfeited goods in the Oceania region, with growing demand. Counterfeited items, such as textile goods, foodstuffs and pharmaceutical products are increasingly prevalent in the country. Similarly, illicit trade in excise goods, specifically tobacco products, has been also on the rise in the region and in the country, due to the increasing levels of excise taxes.

Environment

Nauru's environment has been severely degraded due to the mining of phosphate, resulting in the loss of almost all its original vegetation. This has made Nauru less vulnerable to flora crimes as there is hardly any flora left.

The scale and value of illegal, unreported and unregulated (IUU) fishing in Nauru is less significant than in neighbouring countries. However, these activities cannot be ruled out due to its proximity to the Marshall Islands and Solomon Islands, where IUU fishing is more widespread. Revenues from fishing licenses make up a large proportion of Nauru’s income. The vast majority of the catch is taken by foreign industrial fishing vessels that pay fees to access Nauru’s waters. Nauru is part of the Vessel Day Scheme, which allows vessel owners to purchase and trade days of fishing at sea. This is a cooperative model in which fishing companies bid for fishing days, discouraging fierce competition and illegality, although the latter cannot be discounted since control is weak. Moreover, lax tax policies may attract actors interested in the illicit trading of tuna.

The non-renewable resource industry in Nauru is dominated by phosphate mining, which has caused extensive environmental damage to the island. While there is no evidence of significant criminal activity in the industry, corruption remains a risk within the extractive sector. Nauru's reliance on non-renewable resources has forced it to approve deep-sea mining in its waters in 2023, which has raised alarm among conservationists due to the unknown environmental impacts on the flora and fauna in the ocean. The lack of regulations in the country and the potential for corruption in the sector are cause for concern.

Drugs

There is no evidence of any major drug trafficking activities in Nauru, with minimal risk of the problem emerging in the short and medium term. Heroin, cocaine and synthetic drugs are not prevalent in the country, and there is no evidence of any consumer base for these drugs. Moreover, Nauru's ecological devastation may complicate cannabis cultivation, making the market also negligible. Although Nauru is situated along the methamphetamine smuggling route from South East and East Asia to Tonga and Fiji, there is currently no evidence that it is used as a transit point for synthetic drugs.

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 has a history of offshore banking and as a tax haven, making financial crimes, especially in the form of tax evasion, common in the country. However, there have not been cases of tax evasion reported in recent years.

Criminal Actors

Nauru's limited trade and transport infrastructure, as well as its small population and its geography, make it unlikely for mafia-style groups or criminal networks to be operating in the country. The limited reach and value of illicit economies further reduce opportunities for criminal activity.

State-embedded actors, including government officials, have been implicated in bribery allegations involving foreign businesses. While the fishing sector may be vulnerable to corrupt practices, there is no evidence of state-embedded actors profiting from transnational crime. Foreign criminal actors also have limited involvement in organized crime, with evidence of only a few foreign businesses engaging in corrupt practices. There are no private sector actors involved in criminal economies as the government controls the licit markets on the island.

Leadership and governance

The organized crime landscape in Nauru is extremely limited, although corruption remains a problem due to the country's small population, weak political and economic environment, and vulnerability to foreign influence. Though the government has taken steps to sideline its political opponents, people in Nauru generally enjoy political rights and civil liberties. The government has made efforts to tackle criminal activity, but transparency and accountability are inhibited by the concentration of media outlets in the hands of the state, which impedes the ability to hold instances of corruption and abuse of power to account. Nauru lacks a law on access to public information, and there are no income and asset disclosure laws for appointed or elected officials. The government has also been criticized for hampering international media work and for banning certain companies.

Nauru has a history of international cooperation through its membership in various regional and international organizations. However, it has failed to ratify core international human rights instruments, although it is part of most of the key international treaties on organized crime. Cooperation in criminal matters also appears to be ad hoc rather than strategic, and the country’s actual ability to respond to requests for international criminal justice cooperation is very limited. At the same time, the country is heavily dependent on international cooperation, especially from Australia. In fact, Australia's influence over Nauru's internal affairs has led to concerns over human rights abuses due to the presence of a Regional Processing Centre for asylum seekers on the island. Corruption has been reported in conjunction with this facility, with the agreement to keep it open due to the country’s income being largely dependent on it. At the same time, threats to end this programme have forced the government to seek other sources of income. While Nauru has taken steps to improve its criminal justice system, such as adopting a new criminal code in 2016, there is still room for improvement in terms of legal framework and human rights. Nauru has implemented international agreements and model laws on organized crime in its domestic law, but law enforcement and planning depend heavily on international cooperation due to the lack of financing and lack of qualified personnel on the island.

Criminal justice and security

Nauru's judicial system consists of the Supreme Court, Court of Appeals, District Court and Family Court, with judges appointed by the president to serve until age 65. There are no specific judicial units or law enforcement units that deal with organized crime, as this is almost non-existent on the island. Overall, while the quality of Nauru's judicial and detention system may be sub-standard by global measures, there are few complaints or reports of serious weaknesses and failures in relation to instances of organized crime. However, there is widespread abuse of refugees and asylum seekers within the Nauru Regional Processing Centre. Deported individuals from Australia, while waiting for a resolution of their status, suffer from grossly inadequate housing, denial of health care for life-threatening conditions, and a high rate of self-harm attempts among residents.

Overall, law enforcement relating to major criminal investigations in Nauru is heavily reliant on international assistance from other Pacific countries, namely, Australia and New Zealand. The police force maintains internal security and, if necessary, external security. The country has no military force since, under an informal agreement, defence is the responsibility of Australia. Civilian authorities maintain effective control over the security forces, and these are known for committing few abuses. The Nauru Police Force is responsible for laying charges against offenders and has its own cyber-security division; however, the country is vulnerable to cyber-attacks. There are still concerns about lack of infrastructure and border control capacities in Nauru, but recent efforts to build a climate-resilient port may also lead to improvements in its security in the future.

Economic and financial environment

Nauru was a haven for money laundering in the early 1990s but, since 2004, the government has made significant progress in its anti-money laundering efforts. The risks of money laundering in Nauru are now low due to external pressures and policy measures implemented to improve the image of the country. Also, a narrow economic base, the absence of financial institutions, and strict land tenure restrictions make Nauru unattractive for investment and financial flows. Despite this, the government has been suspected of money laundering practices and other offences, with an Australian bank announcing that it would no longer handle accounts for the Nauran government on suspicions of financial mismanagement.

Overall, Nauru is not a friendly country for investment, and weak institutions make it vulnerable to criminality. However, the isolated location and small area of the island are not attractive for transnational criminal activities either. Although economic growth has picked up in recent years, the declining revenue from phosphate mining and activities associated with the Regional Processing Centre for asylum seekers means that there are few avenues available for future growth. In fact, most of the labour force is employed in either the phosphate-mining sector or in the public sector, with the government being the country’s largest employer. Currently, more than three quarters of the population are unemployed.

Civil society and social protection

The government of Nauru has not implemented any prevention strategies related to organized crime since there is no evidence of this threat in the country. Furthermore, Nauru lacks the financial and technical capacity to implement victim and witness support programmes, hindering victim and witness protection. Refugees living in the Regional Processing Centre for Australian asylum seekers face miserable living conditions and are vulnerable to violation and mistreatment.

There are no civil society actors specifically focused on organized crime, nor are there any non-state actors providing support to victims. Nevertheless, there are several advocacy groups for women, as well as development-focused and religious organizations. Freedom of expression is guaranteed by the constitution but not always respected in practice. Foreign journalists face difficulties operating in Nauru due to government-imposed restrictions aimed at deterring outside coverage of conditions for asylum seekers and refugees. Also, there are laws against defamation, which is punishable with up to three years in prison. Similarly, other regulations serve as a deterrent to journalists publishing anything critical of the government or judiciary. The right to assemble peacefully has not always been respected in practice, particularly regarding demonstrations related to abuse at the Regional Processing Centre for Australian asylum seekers.

People

There is no evidence of human trafficking or smuggling within Tuvalu’s borders. Though Tuvalu’s geographical location makes the country susceptible to regional risks, there have been no reported incidents of these crimes.

Despite having few economic opportunities, Tuvalu is an unlikely location for human smuggling because of its free education system and strong community support. Additionally, there is no information available regarding extortion or protection racketeering on the island.

Trade

Tuvalu has no recorded evidence of arms trafficking within its borders. The country is not strategically attractive or economically permeable for organized crime groups involved in this type of crime. Illicit firearms are not known to be in circulation, and even the National Police do not carry firearms. The low crime rate in the country, combined with the low socio-economic status of many Tuvalu residents, makes it unlikely for an arms trafficking market to emerge.

There is no indication of a significant market for counterfeit goods within the country, nor any evidence of organized crime involvement in such trade. However, recently, there has been an increase in the trade of counterfeited goods in the Oceania region, with growing demand. Counterfeited items, such as clothes, pharmaceutical products, pesticides, and electronic gadgets, mostly originating from China, are becoming more prevalent in commercial and e-commerce trade in Tuvalu. Similarly, the illicit trade in excise goods, specifically tobacco products, have been also on the rise in the region and in the country, due to the increasing levels of excise taxes.

Environment

The market for flora crimes in Tuvalu is nonexistent, though the small size of the islands and limited forest make them more vulnerable to the importation of illegally harvested timber. The main form of fauna crime committed in the country is illegal, unreported, and unregulated (IUU) fishing, with revenue from tuna fishing contributing almost half of the government's revenue. Like several other Pacific Islands, Tuvalu benefits from permanent bilateral ship rider agreements with the US Coast Guard, allowing Tuvaluan law enforcement to expand their reach of monitoring and control for a limited number of days annually. Tuvalu has declared less than 1% of its exclusive economic zone as a marine protected area.

There is no evidence of a nonrenewable resource crimes market in Tuvalu, and the country has recently withdrawn support for deep-sea mining activities.

Drugs

The prevalence of heroin and cocaine trade in Tuvalu is low. However, the country is vulnerable to being a stopover on the Latin America-Oceania drug highway due to its proximity to the high-value market of Australia. Despite this, Tuvalu is not an attractive destination market for drug traffickers due to low drug consumption and purchasing power.

Tuvalu likely has a small illicit market for cannabis, with local production meeting local demand at a relatively low price. There is no evidence of organized crime involvement in Tuvalu's cannabis trade, and the size and value of the market are believed to be much smaller than in neighbouring countries. Tuvalu is not linked to the synthetic drug trade. However, as the South Pacific region is reportedly on a global trafficking route for methamphetamines, there is a possibility that Tuvalu has a transit market for synthetic drugs, albeit limited.

Cyber Crimes

In recent years, Tuvalu has been accelerating its digitization process with the goal of becoming the world's first paperless society. Most of the population owns mobile phones, and the government is working to provide access to more advanced internet technologies. Despite the progress made, there have been no significant cases of cyber-dependent crimes in Tuvalu. Economic factors suggest that Tuvalu will remain a low-value target for organized crime in the cyber realm.

Financial Crimes

Tuvaluans are vulnerable to exploitation by criminals seeking to use their country as a pathway to Australian and New Zealand markets. While there is no evidence of financial crimes in Tuvalu, the country remains vulnerable to exploitation due to its geographic location and the presence of wealthy Australians seeking to minimize their taxes. Aside from these cases, there is no evidence of widespread financial fraud, embezzlement, or misuse of funds in Tuvalu.

Criminal Actors

There is no evidence of mafia-style groups or organized crime in Tuvalu, with the exception of the foreign-led illegal fishing trade. Despite Tuvalu's criminal market being dominated by foreign actors, it is relatively small compared to that of other nations.

State-embedded actors as well as private sector actors involved in any criminal markets and/or corrupt schemes are limited in number. Overall, Tuvalu appears to be at a lower risk of organized crime and criminal networks.

Leadership and governance

Tuvalu's government has not been actively involved in anti-organized crime efforts since it is not a prevalent issue in the country. The government's focus is on more pressing needs such as economic issues and climate change. While Tuvalu's position against child labour and human trafficking has improved since 2013, child labour is still tolerated in practice. The country has shown commitment to tackling human smuggling but has failed to communicate strong opposition to IUU fishing, which is the primary form of organized crime prevalent in its neighbourhood. Nevertheless, there are no indications of government involvement with organized crime. Tuvalu's political system is relatively volatile, with frequent votes of no-confidence against the prime minister, which has contributed to low trust in the government. Despite this, Tuvalu is generally regarded as a free country. While Tuvalu has anti-corruption instruments in place, the government has few coordinated measures targeting corruption. As a preventive measure against it, Tuvalu is part of an initiative led by New Zealand in cooperation with the UN to strengthen anti-corruption laws in the Pacific Island region.

Tuvalu has a positive record of information-sharing and international cooperation as a member of the Commonwealth of Nations and partner to bilateral agreements with the US. The country has committed to regional platforms such as the Pacific Islands Forum and the Asia-Pacific Group on Money Laundering. However, its commitment to international treaties on transnational organized crime and related issues is patchy, as it has not signed/ratified/acceded to several key conventions. Tuvalu has national legislation criminalizing several acts related to transnational organized crime, including human smuggling, human trafficking, and piracy. IUU fishing is criminalized with dedicated legislation and New Zealand has offered support to address illegal tuna fishing. The country's size and community-based approach to governance make its laws and policies considered appropriate.

Criminal justice and security

Tuvalu has an independent judiciary system consisting of island courts, magistrates' courts, a High Court, a Court of Appeal, and the UK-based Privy Council. The government generally respects judicial independence and impartiality. The Tuvalu prison system comprises one jail on the Fongafale islet in Funafuti, which reportedly houses between eight and 12 inmates at any given time. The conditions in the prison and detention centre do not raise concerns regarding living conditions or inmate abuse, and impunity is not an issue in the country.

Tuvalu's law enforcement response is pragmatic and consistent with the location, community, and economic resources available. The country has no military force, but it has a National Police Force consisting of a Maritime Surveillance Unit, Customs, Prisons, and Immigration units. Tuvalu is a member of various transpacific island law enforcement forces and initiatives created to combat transnational organized crime. With the help of Australia, Tuvalu defends its territorial integrity against IUU fishing and smuggling. In 2021, the country began its journey towards digital resilience with the help of the Oceania Cyber Security Centre in Melbourne. This, along with other international programmes, will provide Tuvalu with the capacity to resist cyber-infiltration and improve its cybersecurity.

Economic and financial environment

Tuvalu appears to be committed to anti-money laundering measures, with no major problems reported. Although Tuvalu is compliant with independent recommendations, it has not yet undergone a Mutual Evaluation Report and has not made efforts to become a full member of the Asia/Pacific Group on Money Laundering (APG). However, the APG has welcomed Tuvalu's efforts to strengthen its anti-money laundering system, including establishing a Transaction Tracking Unit within the Tuvalu National Police Force. Tuvalu plans to install a domestic Financial Intelligence Unit, and cooperation with the Fiji Financial Intelligence Unit has been strengthened to devise a possible organizational structure and job descriptions. Tuvalu recognizes the importance of developing an effective supervisory framework for the banking sector, as it does not have a central bank and uses the Australian dollar as its currency.

Tuvalu's economy is dependent on external factors such as remittance payments, fishing licenses, and small-scale exports. The country's GDP is mostly service-based and it has received bilateral aid from Australia and New Zealand. Tuvalu's GDP growth is one of the strongest among the South Pacific island states, and it can generally be seen as a middle to upper-middle-income country. There are no specific sectors captured by organized crime or involved in any economic market regulation activities. Tuvalu's economy was not severely affected by the pandemic as its fishing revenues and donor grants allowed the country to avoid a recession. However, its vulnerability to the effects of climate change, domination by the public sector, and narrow revenue base present economic challenges for the country.

Civil society and social protection

Tuvalu has legislation in place to protect victims of violent crimes, including provisions for compensation and legal representation. However, while there are child protection victim services, adult protection services, particularly for women, remain inadequate. As of 2022, Tuvalu may not be adequately equipped to support crime victims should this become a larger issue in the future. In terms of prevention, Tuvalu lacks specific action plans or national frameworks for organized crime prevention.

NGOs are free to operate in Tuvalu and focus on areas such as good governance, community support, and environmental work. However, there is no information available regarding NGOs that specifically address organized crime-related issues. Overall, Tuvalu is considered to be a free country, but government control over the sole radio and television station limits the expression of independent views.