Financial Crime World

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Palau’s Terrorist Financing Risks Under Scrutiny Amid APG Membership

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The Pacific island nation of Palau has been navigating its terrorist financing risks since joining the Asia-Pacific Group (APG) in June 2002. Following a national risk assessment conducted in 2017, Palau acknowledged its vulnerabilities and took initial steps to mitigate these threats.

Establishing Agencies to Tackle Financial Crimes

According to sources, Palau has established key agencies to tackle financial crimes, including:

  • Financial Crime Investigations Unit (FCIU): Established in late 2016 to strengthen the country’s ability to detect and prevent terrorist financing activities.
  • Narcotics Enforcement Agency: Launched in March 2017 to combat narcotics-related crimes and contribute to the overall fight against financial crimes.
  • Human Trafficking Task Force: Set up in October 2017 to address human trafficking and related financial crimes.

Palau also bolstered its legal framework with the issuance of the Money Laundering Act in 2014. This legislation marked a significant development in Palau’s commitment to combating financial crimes, including those related to terrorism financing.

APG Mutual Evaluation

In 2018, Palau underwent its third APG Mutual Evaluation, which assesses member countries’ efforts to combat money laundering and terrorist financing. The full report from this evaluation is available on the APG website, providing a detailed insight into Palau’s progress in addressing these critical issues.