Financial Inclusion and Combating Financial Crime Take Center Stage in Palau
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Palau has made significant strides towards financial inclusion and combating financial crime since joining the Asia-Pacific Group on Money Laundering (APG) in June 2002.
National Risk Assessment
In 2017, Palau conducted its first national risk assessment, which highlighted the need for robust measures to mitigate money laundering (ML) and terrorism financing (TF) risks. This assessment marked a crucial step towards understanding the country’s vulnerabilities and developing effective strategies to combat financial crime.
Key Entities Established
To combat financial crime, Palau has taken decisive action through the establishment of key entities:
- Financial Crime Investigations Unit: Established in late 2016, this unit is dedicated to investigating and preventing financial crimes.
- Narcotics Enforcement Agency: Launched in March 2017, this agency focuses on combating drug trafficking and related financial crimes.
- Human Trafficking Task Force: Created in October 2017, this task force works to prevent and investigate human trafficking cases.
Strengthened Legal Framework
Palau has also strengthened its legal framework through the issuance of the Money Laundering Act in 2014. This act provides a solid foundation for combating money laundering and terrorism financing. The country underwent its third APG Mutual Evaluation in 2018, with the full report available on the APG website.
Areas for Improvement
The APG Mutual Evaluation serves as a crucial assessment of Palau’s progress in combating financial crime and highlights areas for improvement. As the country continues to navigate the complexities of financial inclusion and combating financial crime, these efforts demonstrate its determination to safeguard its financial system and protect its citizens from illegal activities.
Conclusion
Palau’s commitment to combating financial crime and promoting financial inclusion is evident through its various initiatives and strengthened legal framework. The country’s continued efforts will help to ensure a safer and more stable financial environment for its citizens.