Title: Palau’s Defenses Against Money Laundering and Terrorist Financing: An Assessment by the Asia/Pacific Group (APG)

Evaluating Palau’s Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) Measures

• The Asia/Pacific Group on Money Laundering (APG) has released a report examining Palau’s AML and CFT systems
• Adopted by the APG in July 2018 and endorsed by the Financial Action Task Force (FATF)
• Reveals current state of Palau’s AML/CFT framework and proposes recommendations for enhancement

Progress and Concerns

• Palau has made advancements: established Financial Intelligence Unit (FIU) and introduced AML/CFT regulations
• Areas for improvement: limited FIU capacity, insufficient customer due diligence, risk assessment, and international cooperation
• Challenges: informal sector and prevalence of cash transactions

Recommendations from the APG

• Strengthen the FIU’s capacity
• Enhance customer due diligence measures
• Improve risk assessment and international cooperation mechanisms
• Address challenges posed by the informal sector and promote AML/CFT awareness

The Importance of Continuous Efforts

• Ongoing improvements essential for a robust and effective AML/CFT system
• Demonstrating commitment to international regulations and standards

By focusing on these recommendations, Palau can build a stronger defense against money laundering and terrorist financing and further solidify its position in the international community.