Palau’s Anti-Money Laundering and Combating the Financing of Terrorism Efforts Under Scrutiny

Palau, a Pacific island nation, has undergone a thorough examination of its report detailing its efforts to combat money laundering (AML) and combating the financing of terrorism (CFT). The country has strengthened its AML/CFT legislative framework, which was initially established in 2001.

Enhancements to AML/CFT Legislative Framework

• Key amendments were made to:
  • Money Laundering and Proceeds of Crime Act of 2001
  • Financial Institutions Act of 2001
• Palau enacted the Counter-Terrorism Act of 2007 and the Cash Courier Disclosure Act of 2007

Criminalization of Money Laundering

The offense of money laundering is explicitly criminalized in the MLPCA (Money Laundering and Proceeds of Crime Act). This demonstrates Palau’s commitment to preventing and prosecuting money laundering activities.