Regulatory Bodies for Financial Crime in Palau Step Up Efforts to Combat Money Laundering and Terrorism Financing

Strengthening Financial Integrity

In June 2002, Palau joined the Asia-Pacific Group on Money Laundering (APG), marking a significant move towards strengthening its financial integrity. Since then, the island nation has made concerted efforts to understand and mitigate its risks of money laundering and terrorism financing.

National Risk Assessment

A comprehensive national risk assessment conducted by Palau in 2017 revealed a reasonable understanding of these threats. The assessment prompted authorities to take concrete measures to address them.

Establishing Regulatory Bodies

To combat financial crime, Palau established several regulatory bodies:

• Financial Crime Investigations Unit: Established late in 2016
• Narcotics Enforcement Agency: Established in March 2017
• Human Trafficking Task Force: Established in October 2017

Enhancing Legal Framework

Palau also bolstered its legal framework by issuing the Money Laundering Act in 2014. This act provided a solid foundation for its anti-money laundering efforts.

APG Evaluation

The APG assessed Palau’s progress in combating financial crime during its third mutual evaluation in 2018. The full report is available on the organization’s website. The assessment highlighted Palau’s commitment to combating financial crime and praised its efforts to strengthen its regulatory framework and enhance international cooperation.

Conclusion

With these measures in place, Palau is well-positioned to continue reducing its vulnerability to money laundering and terrorism financing, ensuring a safer and more stable financial environment for its citizens and businesses.