The Central Bank of Samoa
is the nation's reserve bank and, as such, it acts as banker to the
Government and the commercial banks.
Pursuant to its mandate under the
Central Bank of Samoa Act 1984, the Financial Institutions Act 1996
and the Money Laundering Prevention Act 2000, the Central Bank has
the following main functions:
- regulating the issue supply
availability and international exchange of money;
- advising the Government on
banking and monetary matter;
- promoting internal and external
- promoting a sound financial
- promoting credit and exchange
conditions conducive to the orderly and balanced economic
development of Samoa;
- supervising and regulating
banking business and the extension of credit; and
- implementing counter measures
against money laundering such as to deter, detect and
criminalized money laundering activities.
The Central Bank undertakes the
formulation and implementation of monetary policy and related
measures, which include open market operations in Central Bank
Securities to influence the level of interest rates and the
availability of credit in the financial system.
It is also responsible for the
management of the rate at which Samoa's Tala is exchanged with
currencies of other countries and, when necessary, administers
exchange control measures with regard to monitoring foreign currency
The Bank in addition, is responsible
for the custody and management of Samoa's reserves of international
currencies for the payments of goods and services.
The issue of currency notes and coins
to meet the needs of the business community and the general public
is a critical role for which the Central Bank is widely known.
As fiscal agent of Government, the
Central Bank undertakes, when required, the issue and administration
of Treasury Bills and other Government securities. Moreover, it
issues it own Central Bank Securities to the commercial banks and
non-banks and maintains a registry service and rediscount
The Central Bank is responsible for
the registration and prudential supervision of commercial banks. It
also acts as banker for the commercial banks, provides a facility
for the clearing and settlement of inter-bank payments, and is also
custodian of the commercial banks' statutory minimum cash reserves.
The Financial Institutions Act 1996
appoints the Central Bank as the authority that issues licenses to
financial institutions and, shall undertake further scrutiny of any
information suggesting money laundering taking place.
During the period under review, the
Central Bank employed a total of eighty-seven staff. Its new
organization structure is provided and its operational functions are
carried out over six departments.