Here is the article in markdown format:

Palau’s Compliance with Recommendation 28: Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT)

Overview

Palau has made significant progress in implementing AML/CFT measures for Designated Non-Financial Businesses and Professions (DNFBPs). However, there are some minor shortcomings that need to be addressed.

Criterion 28.1: Prevention of Gambling

• Mostly met - Palau has laws and regulations in place to prevent gambling, but lacks fit and proper requirements for potential casinos.

Criterion 28.2: Designated Competent Authority

• Met - The Financial Intelligence Unit (FIU) is designated as the competent authority for DNFBP AML/CFT supervision.

Criterion 28.3: Monitoring and Supervision of DNFBPs

• Partly met - While the FIU has powers and duties to monitor and supervise DNFBPs, Palau lacks a monitoring system to ensure compliance with AML/CFT obligations by all DNFBPs.

Criterion 28.4 (a): Powers of Supervising Authorities

• Met - The supervising authorities have adequate powers to perform their functions under the Money Laundering Prevention Control Act (MLPCA).

Criterion 28.4 (b): Prevention of Criminal Accreditation

• Mostly met - While there are some measures in place to prevent criminals from being professionally accredited, the Supreme Court is not an SRB for AML/CFT purposes.

Criterion 28.4 (c): Sanctions for Non-Compliance

• Met - Sanctions under the MLPCA are applicable to DNFBPs, and the FIU has the power/authority to impose sanctions.

Conclusion

Overall, Palau’s compliance with Recommendation 28 is rated as “largely compliant” due to some minor shortcomings. However, the country has made significant progress in implementing AML/CFT measures for DNFBPs.