Financial Crime World

Financial Crimes Haunt Northern Mariana Islands’ Economy

The Commonwealth of the Northern Mariana Islands (CNMI) economy has been severely impacted by financial crimes, leading to a decline in its gross domestic product (GDP). In this article, we will explore the effects of financial crimes on the CNMI’s economy and discuss the need for government action.

Economic Challenges

The CNMI’s GDP declined by 20 percent in 2018 due to a significant drop in tourist spending and casino gambling revenues following Super Typhoon Yutu. The parent company of the casino has warned shareholders that it expects to record a loss for the first six months of 2019, compared to a profit during the same period in 2018. The company’s independent auditor has also raised concerns about its ability to continue as a going concern.

Workforce Composition

The ratio of United States workers to foreign workers in the CNMI remains relatively stable, with US workers making up around 49 percent of the workforce in 2018. However, the size of the workforce grew each year from 2014 through 2017 before contracting by almost 2,000 workers in 2018.

Foreign Worker Permits

The Department of Homeland Security approved over 9,000 CW-1 foreign worker permits for 2018 and more than 11,000 permits for 2019. The increasing number of foreign workers has raised concerns about the impact on the local workforce.

Financial Crimes: A Major Obstacle to Economic Growth

Experts say that financial crimes such as money laundering and fraud have been a major obstacle to economic growth in the CNMI. “The lack of effective regulation and enforcement has created an environment where financial criminals can operate with impunity,” said an economist at the University of Hawaii.

Government Action Needed

The Northern Mariana Islands U.S. Workforce Act of 2018 extended the CW-1 program for 10 additional years, but it did not address the issue of financial crimes. The government needs to take a more proactive approach to tackling these issues if it wants to attract foreign investment and stimulate economic growth.

Conclusion

In conclusion, the Northern Mariana Islands’ economy is struggling due to financial crimes, which have had a significant impact on its GDP and workforce composition. It is essential for the government to take action to address this issue and create an environment that is conducive to economic growth and development.

  • Key takeaways:
    • Financial crimes are a major obstacle to economic growth in the CNMI.
    • The lack of effective regulation and enforcement has created an environment where financial criminals can operate with impunity.
    • The government needs to take a more proactive approach to tackling these issues if it wants to attract foreign investment and stimulate economic growth.