Boosting Bank Compliance in the Republic of the Marshall Islands
The Republic of the Marshall Islands has strengthened its bank supervision capacity and compliance procedures with technical assistance from the Financial Services Volunteer Corps (FSVC) since 2016. This significant undertaking aimed to improve the country’s financial and compliance capacities, enhance its ability to respond effectively to money laundering risks, and reinforce ties with the international financial sector.
Key Indicators of Success
- Over $554,600 in donated services from FSVC
- Significant improvement in bank supervision capacity and compliance procedures
- Enhanced ability to respond effectively to money laundering risks
FSVC’s Contribution to the Marshall Islands’ Banking System
Past programs initiated by FSVC have included:
- Strengthening bank supervision capacity
- Improving financial and compliance capacity
- Reinforcing ties with the international financial sector
Notably, FSVC implemented a technical assistance program to help the Marshall Islands sustain its correspondent banking relationship. This development is seen as a major boost for the country’s banking system, which has faced challenges in maintaining relationships with foreign banks due to concerns over money laundering risks.
A Major Boost for the Marshall Islands’ Banking System
By enhancing its compliance procedures and bank supervision capacity, the Republic of the Marshall Islands can now better compete in the international financial sector. This achievement is a testament to the successful collaboration between FSVC and local authorities, demonstrating that with the right support, small countries like the Marshall Islands can make significant strides in strengthening their banking systems.