Financial Crime World

Palau’s Agency Rules and Rulings: A Step in the Right Direction for Transparency

In a significant move towards greater transparency, Palau has enacted rules and rulings that are only effective once they are available for public inspection. This is as per title 6, section 128 of the Palau National Code.

Citizen’s Right to Request Official Government Information

The Open Government Act also gives citizens the right to request official government information, although the process is still unclear. According to the Act:

  • The Attorney General acts as the default designated authority.
  • Reasons for withholding information include:
    • National defense or foreign policy secrets
    • Trade secrets
    • Personal privacy concerns

Access to High-Level Government Documents

High-level government documents are considered strictly confidential and require a security clearance or an Open Government Act request to access them. The timeline for responding to requests is outlined in the Act, with a decision required within 10 working days unless there are exceptional circumstances or the volume of information requested is high.

Consequences of Non-Compliance

While procedures are still being developed to ensure compliance with this timeline, penalties are provided for non-compliance. Action can also be brought before the Palau Supreme Court to enforce violations of the Open Government Act.

Public Access to Government Meetings and Information

In addition, meetings of governing bodies must be open and public, permitting persons to attend unless otherwise provided. Some government departments, including:

  • Office of the Special Prosecutor
  • Office of the Public Auditor

actively facilitate public access by publishing information on their websites and through media campaigns.

Outreach Activities and Anonymous Reporting

Palau has also engaged in outreach activities, such as:

  • Anti-corruption awareness programs
  • Social science classes in public high schools

Anonymous reporting to the Public Auditor and the Office of the Special Prosecutor is permitted, and both offices publish reports online.

Regulations for the Private Sector

The private sector is also subject to certain regulations, including:

  • Requirements for corporations to maintain records and cooperate with requests from the Registrar of Corporations
  • Code of conduct by the Chamber of Commerce

However, there are no formal requirements relating to the integrity of board members.

Money Laundering Regulations

Regarding money laundering, Palau has enacted laws requiring financial institutions and other reporting entities to have policies and procedures in place to manage and mitigate risks related to money laundering and terrorist financing.

Conclusion

Overall, these measures demonstrate Palau’s commitment to transparency and accountability. By making agency rules and rulings available for public inspection and providing citizens with the right to request government information, Palau is taking steps towards a more open and transparent government.