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Palau Takes Steps to Tackle Financial Crime Risks

The Republic of Palau has made significant progress in managing financial crime risks, particularly money laundering and terrorism financing. As a member of the Asia-Pacific Group on Money Laundering (APG) since 2002, Palau has demonstrated its commitment to combating illicit activities.

Addressing Financial Crime Risks

In 2017, Palau conducted its first national risk assessment, which provided a comprehensive understanding of its vulnerabilities. The assessment highlighted areas where the country is at risk of money laundering and terrorism financing, allowing authorities to develop targeted strategies to mitigate these threats.

Key Agencies and Task Forces

Palau has established key agencies and task forces to address financial crime risks:

• Financial Crime Investigations Unit: Set up in late 2016
• Narcotics Enforcement Agency: Began operations in March 2017
• Human Trafficking Task Force: Launched in October 2017

These entities have been instrumental in strengthening Palau’s capacity to investigate and prosecute financial crimes.

Strengthening the Legal Framework

In addition to these initiatives, Palau has strengthened its legal framework through the enactment of the Money Laundering Act in 2014. This legislation provides a robust foundation for combating money laundering and related activities.

APG Evaluation

Palau’s efforts were recently evaluated by the APG as part of its third mutual evaluation in 2018. The full report is available on the APG website, providing insight into Palau’s progress and challenges in managing financial crime risks.