Financial Crime World

MARSHALL ISLANDS FALLS SHORT ON COMPLIANCE WITH MONEY LAUNDERING LAWS

The Marshall Islands, a small island nation in the Pacific Ocean, has been found to be lagging behind in its efforts to comply with international anti-money laundering laws. According to a report published by the Asia/Pacific Group on Money Laundering (APG), the Marshall Islands has failed to implement adequate measures to prevent and detect money laundering and terrorist financing.

KEY FINDINGS OF THE REPORT

The APG report, released in June 2024, highlighted several areas where the Marshall Islands needs to improve its compliance with international standards. These include:

Lack of Effective Laws and Regulations

  • The Marshall Islands does not have adequate laws and regulations in place to prevent and detect money laundering and terrorist financing.

Insufficient Financial Intelligence Unit

  • The country’s financial intelligence unit (FIU) is not functioning effectively, which makes it difficult for authorities to identify and investigate suspicious transactions.

Limited Customer Due Diligence

  • Financial institutions in the Marshall Islands do not conduct adequate customer due diligence, which increases the risk of money laundering and terrorist financing.

International Community Urges Marshall Islands to Improve Compliance

The international community is urging the Marshall Islands to take serious steps to improve its compliance with anti-money laundering laws. The APG has recommended that the country:

  • The Marshall Islands should establish a comprehensive legal framework that covers all aspects of anti-money laundering and counter-terrorist financing.

Strengthen Its FIU

  • The country’s FIU should be strengthened to enable it to effectively identify and investigate suspicious transactions.

Enhance Customer Due Diligence

  • Financial institutions in the Marshall Islands must conduct thorough customer due diligence to prevent money laundering and terrorist financing.

The international community is closely monitoring the situation and will continue to provide support and guidance to the Marshall Islands as it works to improve its compliance with anti-money laundering laws.