Marshall Islands Faces Emerging Threats to Financial Security

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National Risk Assessment Workshop Highlights Need for Action

A recent three-day national risk assessment workshop in Majuro has shed light on the need for the government of the Marshall Islands to take concrete steps to combat money laundering and terrorist financing. The event, held at the International Conference Centre (ICC) in January, brought together representatives from various government agencies, private sector companies, and non-governmental organizations.

Key Takeaways from the Workshop

• The National Risk Assessment (NRA) process is crucial in identifying threats and vulnerabilities to money laundering and terrorist financing in the country.
• The NRA aims to develop an action plan to mitigate or address these risks and provide assurance to US banks and regulators that the RMI is taking concrete steps to address financial crimes.

Importance of Addressing Financial Crimes

Experts warn that failing to address money laundering and terrorist financing can have serious consequences for the country’s financial security, including:

• Increased costs for banks and businesses
• Damage to the nation’s reputation

International Support and Compliance

The World Bank is assisting the RMI government in the assessment process, which aims to ensure compliance with international standards set by the Financial Action Task Force (FATF). The FATF requires countries to take steps to combat money laundering and terrorist financing, including conducting a national risk assessment.

Collaboration between Government and Private Sector

As the Marshall Islands continues to navigate these emerging threats, the government and private sector are working together to develop an action plan to address financial crimes and ensure the country’s financial security.