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Palau Strengthens AML/CFT Laws: IMF Praise

· 2 min read
John Kowala
AML Analyst

Subtitle: Pacific Island Nation Strengthens Anti-Money Laundering and Counter-Terrorism Legislation​

The Republic of Palau has received praise from the International Monetary Fund (IMF) for its recent legislative achievements in combating financial crimes. Palau's progress against Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) was scrutinized during a detailed assessment, revealing the Pacific island nation's efforts to enhance its legal framework since 2001.

Palau's Legislative Achievements​

Palau's government has taken significant steps in strengthening its AML/CFT framework:

  1. Amendments to the Money Laundering and Proceeds of Crime Act of 2001 (MLPCA) and Financial Institutions Act of 2001
  2. Approval of the Counter-Terrorism Act of 2007 and the Cash Courier Disclosure Act of 2007

These legislative acts include:

  • Criminalizing the offense of money laundering in the MLPCA, providing local authorities with the power to pursue criminal investigations and prosecute offenders more effectively
  • Fortifying Palau's commitment to international regulations in AML/CFT

The International Community's Response​

In recognition of Palau's progress, the IMF has encouraged further steps to improve the effectiveness of its AML/CFT framework:

  • Enacting additional regulatory measures
  • Increasing the resources allocated to regulatory agencies for adequate enforcement

The international community applauds Palau's determination to uphold its obligations under international law and sets a positive example for other countries in the Pacific region. This progress contributes to preventing and mitigating the risks posed by financial crimes, money laundering, and terrorist financing.

Bolstering International Confidence​

Palau's strides in fortifying its legislative framework demonstrate its commitment to fostering transparency, accountability, and stability within its financial system. This progress also bolsters international confidence in the island nation's financial institutions and economic potential.