Palau Strengthens Financial Compliance against Money Laundering and Terrorist Financing

According to a recent report by the Asia/Pacific Group on Money Laundering (APG), Palau, a Pacific Island nation, is making progress in improving its Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) measures.

APG Evaluation of Palau’s AML/CFT Measures

The evaluation, which took place from 20 November to 1 December 2017 and was adopted by the APG in July 2018, revealed both strengths and weaknesses in Palau’s AML/CFT system.

Strengths

• Legal framework is largely in place
• Notable progress in risk assessment and international cooperation

Weaknesses

• Implementation of AML/CFT measures and the supervision and enforcement of financial institutions remains a challenge

APG Recommendations

The APG report offers recommendations to strengthen Palau’s AML/CFT system. Some suggestions include:

1. Improving risk assessment and understanding of money laundering and terrorist financing risk
2. Enhancing the supervisory capacity of the Office of Professional Responsibility (OPR)
3. Ensuring effective implementation of AML/CFT measures by financial institutions

Resources

The report is available for public viewing on the Financial Action Task Force (FATF)-Gafi website and serves as a valuable resource for stakeholders interested in Palau’s progress towards strengthening its financial compliance framework.

Global Impact

The measures undertaken by Palau contribute to the international community’s efforts to prevent money laundering, terrorist financing, and proliferation financing. Palau’s progress towards AML/CFT compliance is an essential part of the broader context of the global fight against financial crimes.