Narcotics-related offences are estimated to generate more than $40 million in criminal proceeds annually in Fiji, with the country facing a growing money-laundering threat from the illicit drug trade.
The assessment is contained in the Standing Committee on Economic Affairs’ review of the Fiji Financial Intelligence Unit 2024 Annual Report, tabled in Parliament.
The report describes narcotics-related crime as a “high and increasing” money-laundering threat, with Fiji being used as a transhipment point for methamphetamine and cocaine moving from the Americas to Australia and New Zealand.
It said Fiji’s role in international drug trafficking had also resulted in a “spillover” of illicit drugs into the domestic market.
“While foreign actors primarily handle the shipment of narcotics, local criminal gangs, including outlaw motorcycle gangs (OMCGs), have begun to dominate the supply of narcotics in the domestic market,” the report states.
The report also points to Fiji’s growing locally produced marijuana market, with increasing cases involving cultivation and possession.
It highlighted the 4.15-tonne methamphetamine seizure in Nadi in 2024, valued at about $2 billion, describing it as the largest drug bust in Fiji’s history.
According to the report, the seizure demonstrated the scale and value of transnational trafficking operations using Fiji as a transit and storage location and, to a lesser extent, as a destination.
However, much of the money associated with major trans-Pacific drug shipments does not pass through Fiji.
“Most financial flows from these drug transhipments avoid Fiji’s financial system, transferring directly between source and destination countries,” the report states.
Money generated from drugs sold within Fiji presents a more direct money-laundering risk.
The report said proceeds from locally grown marijuana and “spill-over” cocaine and methamphetamine are being laundered through the domestic economy, with sectors at risk including banks, payment service providers, remittance services, legal practitioners and real estate agents.
