Pago Pago, AMERICAN SAMOA — The Senate has given final approval to a major new bill called the Money Laundering Prevention and Enforcement Act of 2026. The goal of this law is simple: to create strong, clear criminal rules that make it illegal to hide or move money earned through crime in American Samoa.

The Act says a person commits money laundering if they knowingly try to carry out any financial transaction involving money gained from illegal activity, and do so with the intent to hide or disguise where the money came from, cover up who owns or controls the money, avoid required financial reporting under territorial or federal law, help or promote more illegal activity, move illegal money into, out of, or within American Samoa, or break up transactions (“structuring”) to avoid reporting rules.

These actions are now officially crimes under territorial law.

Money laundering is classified as a Class B felony. If the amount of illegal money involved is more than $100,000, the crime becomes a Class A felony, which carries even harsher punishment.

Courts must also order the forfeiture of all illegal money and any tools used to commit the crime, restitution to victims, and a civil penalty of up to three times the value of the illegal proceeds.

These penalties are designed to make money laundering extremely costly and risky.

The Office of Financial Institutions (OFI) will take the lead. OFI will receive and review all currency transaction reports, review suspicious activity reports, and conduct the initial investigation.

If OFI finds signs of criminal behavior, it must immediately send the case to the Office of the Attorney General, which will handle deeper investigation and prosecution.

The Act creates a special fund in the Treasury to support enforcement. Money will flow into this fund from 50 percent of fees, fines, and penalties collected by OFI, 50 percent of criminal fines, forfeitures, and penalties collected by the Attorney General, and any money the Legislature chooses to add.

The fund can only be used for hiring and training staff at OFI and the Attorney General’s Office, investigations, audits, compliance checks, and other enforcement activities. This ensures that agencies have the resources they need to enforce the law effectively.

OFI and the Attorney General will jointly manage the fund. Every year, they must submit a report to the Legislature that includes the total money deposited into the fund, all spending from the fund, and a summary of investigations, enforcement actions, audits, and compliance work supported by the fund.

This reporting requirement is meant to keep the process transparent and accountable.