Title: Palau’s Crackdown on Money Laundering and Terrorist Financing: APG Evaluation

Subheading: Asia Pacific Group Assesses Palau’s Progress in Fighting Financial Crimes

• The Asia Pacific Group (APG) of anti-money laundering and countering the financing of terrorism (AML/CFT) bodies conducted an onsite evaluation of Palau’s financial system in 2018.
• The report sheds light on Palau’s accomplishments and recommends strategies for enhancing its AML/CFT framework.

Key Findings of the Evaluation

• Analysis of compliance with 40 FATF Recommendations.
• Evaluation of practical implementation of Palau’s AML/CFT system.

Palauan Government’s Progress

• Introduced a robust legislative framework.
• Established a Financial Intelligence Unit (FIU).
• Enhanced regulatory oversight in critical sectors.

Areas for Improvement

• Enhance customer due diligence measures.
• Combat risks of correspondent banking relationships.
• Address problem of politically exposed persons.

Acknowledging the Efforts

• Palau has engaged in ongoing dialogue with other countries and international organizations to strengthen its legal framework.
• The country’s commitment to international cooperation is recognized in the report.

Conclusion

• Palau’s dedication to preventing money laundering, terrorist financing, and proliferation financing is evident in its commitment to building a robust regulatory framework.
• Ongoing international cooperation is crucial for enhancing the global fight against financial crimes.