Palau’s Anti-Money Laundering and Combating Financing of Terrorism Measures

Summary of Key Points

• Palau has a low risk of money laundering (ML) and terrorist financing (TF), but still faces some ML risks within its own context.
• The process to prepare Palau’s first National Risk Assessment (NRA) was less than optimal from a private sector perspective.

Anti-Money Laundering and Combating Financing of Terrorism Challenges in Palau

Lack of AML/CFT Strategy or Policy

There is no documented Anti-Money Laundering/Combating Financing of Terrorism (AML/CFT) strategy or policy informed by risks to address ML/TF risks in Palau.

Financial Intelligence and Information Sharing

• Financial intelligence and information have been used by competent authorities investigating money laundering or predicate offenses.
• However, Law Enforcement Agencies (LEAs) have limited understanding of the benefits and use of financial intelligence.

Cooperation Between Competent Authorities

Palau has a sound level of cooperation between competent authorities through the Money Laundering Working Group (MLWG) at a strategic level and the creation of the Financial Crimes Investigation Unit (FCIU) at an operational investigative level.