APG Raises Alarm Over Money Laundering Risks in Tonga Amid Surge in Drug-Related Crime
Regional financial crime authorities issued a formal warning on February 27, 2026, during an official media briefing in the capital of Tonga, highlighting growing money laundering risks linked to rising drug-related crime across the Pacific. The statement was delivered the same day it was officially released by the Asia/Pacific Group on Money Laundering (APG) following regional assessments conducted throughout 2025 and early 2026.
Speaking at the press conference in NukuÊ»alofa, the APG Deputy Executive Secretary stated that the increase in narcotics trafficking across Pacific island nations has directly contributed to a rise in illicit financial flows. “When drug trafficking expands, the proceeds must enter the financial system. That is where money laundering risks intensify,” the official said. He emphasized that financial transactions linked to organized crime networks have become increasingly sophisticated and transnational.
The concern stems from a series of regional findings over the past two years showing a significant increase in methamphetamine trafficking routes passing through Pacific waters. Law enforcement agencies across several island nations reported higher drug seizures in 2025, prompting financial monitoring bodies to investigate unusual cross-border transactions suspected to be linked to criminal proceeds. Authorities observed patterns of structured deposits, cross-jurisdiction fund transfers, and the use of intermediary accounts designed to obscure the origin of funds.
Following these developments, APG initiated consultations and compliance reviews in multiple Pacific jurisdictions, including Tonga. Preliminary evaluations indicated that while Tonga is not considered a major offshore financial hub, its developing financial system and limited regulatory resources could present vulnerabilities if not strengthened. The review aimed to assess legal frameworks, reporting mechanisms, and enforcement capabilities related to anti-money laundering measures.
The Governor of the National Reserve Bank of Tonga acknowledged during the briefing that international scrutiny has increased as global regulators tighten compliance standards. “We are committed to strengthening transaction monitoring systems and ensuring that our regulatory framework meets international standards,” the Governor stated. He added that protecting the integrity of Tonga’s banking sector is essential for maintaining correspondent banking relationships and international financial access.
Officials explained that common money laundering techniques in the region include layering transactions through multiple accounts, transferring funds across borders to reduce traceability, and using shell companies to disguise ownership structures. These methods have reportedly become more complex as organized crime groups adapt to tighter monitoring mechanisms in larger financial centers.
The February 27, 2026 briefing concluded with a call for stronger regional cooperation, including intelligence sharing, joint investigations, and technical assistance to smaller Pacific states. APG representatives emphasized that coordinated enforcement is critical to preventing criminal networks from exploiting regulatory gaps between jurisdictions.
The warning serves as a broader signal that Pacific island nations, including Tonga, are increasingly affected by global criminal finance trends. Authorities maintain that early intervention, regulatory reform, and regional collaboration are essential to preventing further escalation of money laundering risks linked to drug trafficking and organized crime in the Pacific.