Financial Crime World

Money Laundering and Terrorist Financing Threats Identified in Marshall Islands

A recent workshop held in Majuro, Marshall Islands, has taken a significant step towards preventing financial crime in the nation. The first National Risk Assessment (NRA) workshop brought together government and private sector representatives to identify money laundering and terrorist financing threats.

International Requirements for Combating Financial Crime

The three-day event was a key requirement of the international Financial Action Task Force (FATF), which demands that countries take steps to combat money laundering and terrorist financing. The FATF aims to promote the implementation of effective measures to prevent financial crime globally.

The National Risk Assessment Process

The NRA process involves identifying vulnerabilities and developing an action plan to mitigate risks. According to Sultan Korean, RMI Banking Commissioner, the NRA will assist in addressing “de-risking” related to banking by providing assurance to US banks and regulators that measures are being taken to address money laundering and terrorist financing deficiencies.

Support from International Partners

The World Bank is supporting the assessment process alongside the Financial Intelligence Unit and the Banking Commission. This collaborative effort aims to ensure that the Marshall Islands remains compliant with international standards and effective in preventing financial crime.

Key Steps in the Assessment Process

  • Phase 1: Identification of vulnerabilities: The first phase involved two video conferences with international consultants last year.
  • Phase 2: NRA workshop: The recent three-day event brought together government and private sector representatives to identify money laundering and terrorist financing threats.
  • Phase 3: Review of risk assessment results and action plan: A final concluding workshop will review the risk assessment results and action plan.

Conclusion

The National Risk Assessment (NRA) process is crucial in preventing financial crime and ensuring that the Marshall Islands remains compliant with international standards. This collaborative effort between government, private sector representatives, and international partners aims to address money laundering and terrorist financing deficiencies.