Palau’s Efforts to Combat Money Laundering and Terrorism Financing Face Scrutiny

A comprehensive report has assessed Palau’s efforts to combat Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT). The report highlights significant strides made by Palau in strengthening its AML/CFT legislative framework, which was first established in 2001.

Strengthened Legislative Framework

Palau has amended key legislation to bolster its defenses against money laundering. Specifically:

• The Money Laundering and Proceeds of Crime Act of 2001 has been updated
• The Financial Institutions Act of 2001 has been revised

These amendments demonstrate Palau’s commitment to combating money laundering.

Enhanced CFT Capabilities

In addition, Palau has enacted legislation to enhance its capabilities in combating the financing of terrorism. These include:

• The Counter-Terrorism Act of 2007
• The Cash Courier Disclosure Act of 2007

These acts demonstrate Palau’s commitment to eradicating terrorist financing.

Criminalization of Money Laundering

The report notes that money laundering is criminalized under Palau’s Money Laundering and Proceeds of Crime Act. This underscores the country’s commitment to combating this illicit activity.

Overall, the report highlights significant progress made by Palau in strengthening its AML/CFT legislative framework and enhancing its CFT capabilities. However, further scrutiny is needed to ensure that these efforts are effective in preventing money laundering and terrorist financing.