Marshall Islands Enhances Banking Regulations to Prevent Financial Crime

The Republic of the Marshall Islands has taken a significant step towards strengthening its banking regulations by releasing new guidance on targeted financial sanctions for banks, financial service providers (FSPs), and designated non-financial businesses and professions (DNFBPs).

Enhanced Compliance with International Sanctions

According to the Office of the Banking Commission, the new guidance is aimed at assisting organizations in complying with the United Nations Sanctions (Implementation) Act, 2020, and the United Nations (UN) Targeted Financial Sanctions (Terrorism & Proliferation) Regulations, 2020.

Key Requirements for Banks, FSPs, and DNFBPs:

• Apply policies, procedures, and controls to implement targeted financial sanctions against individuals and entities designated in the UN Consolidated List
• Designate individuals and entities by Marshall Islands authorities

Framework for Compliance

The new guidance will provide a framework for organizations to follow, ensuring they are meeting their obligations under the Act and Regulations.

Responsibility of RMI-registered Attorneys:

The Office of the Attorney General has issued the guidance to RMI-registered attorneys, who will be responsible for implementing the necessary policies and procedures within their organizations.

Access to Relevant Information

In addition to the guidance, the Office of the Banking Commission has made it easier for the public to access relevant information. The UN Security Council Consolidated List can now be accessed through the RMI Courts website, along with the United Nations Sanctions (Implementation) Act, 2020, and the United Nations (UN) Targeted Financial Sanctions (Terrorism & Proliferation) Regulations, 2020.

Next Steps:

The Office of the Banking Commission has urged organizations to familiarize themselves with the new requirements and to contact them with any questions or concerns.