Financial Crime World

Papua New Guinea’s Cybercrime Unit Takes Aim at Financial Institutions in Palau Amid Growing Concerns of Illegal Activities

A new cybercrime unit has been established to tackle internet-related crimes in Palau, a move aimed at curbing the growing threat of illegal activities involving financial institutions. The multi-agency team, comprising personnel from the Ministry of Finance and the Ministry of Justice, will investigate reported cases of cybercrimes.

Investigations Already Underway

According to Director Rhinehart Silas of the Bureau of Revenue, Customs and Taxation, the unit has already received reports of possible illegal activities involving cyber-activities. However, he declined to provide further details as investigations are ongoing.

The team includes representatives from various agencies such as:

  • National Drug Enforcement Agency
  • Customs and Border Protection
  • Bureau of Revenue and Taxation
  • Immigration
  • Labor
  • Other agencies as needed

Limited Capacity to Investigate Cybercrimes

Palau’s limited capacity to investigate cybercrimes is a major concern. Director Silas acknowledges that the country’s laws do not adequately address this issue. The increasing availability of faster internet and greater capacity has created new opportunities for criminal activities, but Palau’s legal framework remains inadequate to deal with these threats.

Previous Warnings and Regulations

In March 2019, the Financial Institutions Commission (FIC) issued a moratorium on cryptocurrency activity in Palau or under its name, citing the lack of laws and regulations governing this type of financial activity. In November 2019, the Bureau of Revenue and Taxation and FIC jointly warned citizens against illegal use of false licenses or expired licenses to engage in unlicensed financial transactions, including cryptocurrency.

Forms of Cybercrimes in Palau

Cybercrimes in Palau can take many forms, including:

  • Internet scamming
  • Unlicensed online gambling
  • Hacking
  • Identity theft
  • Transaction fraud

Establishment of the Cybercrime Unit

The establishment of the cybercrime unit is a critical step towards combating these illegal activities and protecting the country’s financial institutions from potential threats. The team will work to investigate reported cases, gather evidence, and bring perpetrators to justice.