Financial Crime World

MARSHALL ISLANDS TIGHTENS GRIP ON ANTI-MONEY LAUNDERING REGULATIONS

The Republic of the Marshall Islands has taken significant steps to strengthen its anti-money laundering (AML) regulations, aimed at preventing illicit financial activities and promoting transparency in its financial sector.

Enhanced Automatic Exchange of Financial Account Information Act

Recent amendments have enhanced the Automatic Exchange of Financial Account Information Act of 2016 Regulations. These updates now require financial institutions to share information with foreign governments on an automatic basis. The new regulations also impose stricter penalties for non-compliance, ensuring that financial institutions are held accountable for adhering to AML standards.

Updated Anti-Money Laundering Guidelines

The Banking Commission has updated its Anti-Money Laundering Guidelines for Designated Non-Financial Businesses and Professions. These guidelines provide clear guidance on:

  • Customer due diligence
  • Reporting suspicious transactions
  • Record-keeping requirements

These updates emphasize the importance of implementing effective internal controls and risk management systems, ensuring that financial institutions are equipped to identify and prevent money laundering risks.

AML Regulations 2002 (2023)

The country’s financial services providers (FSPs) are now required to adhere to the new AML Regulations, 2002 (2023). These regulations outline specific procedures for identifying and preventing money laundering activities, including:

  • Identifying and verifying customers
  • Conducting regular risk assessments
  • Implementing effective internal controls

The guidelines also emphasize the importance of implementing effective internal controls and risk management systems, ensuring that financial institutions are equipped to identify and prevent money laundering risks.

Combating Terrorist Financing

The Marshall Islands has implemented a series of regulations aimed at combating terrorist financing, including:

  • The United Nations Targeted Financial Sanctions (Terrorism & Proliferation) Regulations 2020
  • Prohibiting transactions with individuals or entities designated as terrorists or proliferators by the United Nations Security Council

Regular Audits and Inspections

The country’s financial sector is subject to regular audits and inspections to ensure compliance with AML regulations. The Office of the Attorney-General has been tasked with overseeing the implementation of these regulations and ensuring that all financial institutions are in compliance.

The Marshall Islands’ efforts to strengthen its AML regulations demonstrate its commitment to preventing illicit financial activities and promoting a transparent and stable financial sector. The country’s regulatory framework is now more robust, and its financial institutions are better equipped to identify and prevent money laundering risks.