Marshall Islands Steps Up Efforts to Combat Financial Terrorism with US Support

The Republic of the Marshall Islands (RMI) has intensified its fight against financial terrorism by addressing key challenges in its financial sector, including correspondent banking relationships. The country’s efforts are being bolstered by a new partnership with the United States aimed at enhancing adherence to international anti-money laundering and combating the financing of terrorism (AML/CFT) standards.

Enhancing Examination Procedures

As part of the collaboration, US regulatory bodies will share examination procedures and manuals with RMI Banking Commission examiners. This will provide them with enhanced tools to prepare for and conduct examinations, focusing on best practices in:

• On-site supervision
• Off-site supervision

This training will ensure that RMI bank examiners are equipped to effectively monitor financial institutions.

Valuable Insights and Knowledge Sharing

The Marshall Islands will have the opportunity to observe real-time bank examinations conducted by US regulators, gaining valuable insights into international best practices. Senior US Federal and State bank examiners will also share their experiences and knowledge with RMI counterparts, who have conducted similar examinations of US and international banks.

Strengthening Capacity and International Cooperation

The partnership aims to strengthen the capacity of the Marshall Islands’ banking sector to meet international AML/CFT standards. This collaboration is expected to yield significant benefits for the RMI, including:

• Improved correspondent banking relationships
• Increased trust from international partners

By enhancing its ability to combat financial terrorism, the Marshall Islands will be better equipped to protect its financial system and reputation.