Strengthened Terrorism Financing Laws in Palau Revealed in Assessment Report

Palau’s efforts to combat terrorism financing and money laundering have been strengthened, as revealed by its latest anti-money laundering (AML) and combating the financing of terrorism (CFT) assessment report. The report highlights significant enhancements to the country’s AML/CFT legislative framework.

Enhancements to AML/CFT Legislative Framework

Palau has built upon existing laws since 2001, introducing amendments to key legislation:

• Money Laundering and Proceeds of Crime Act of 2001: This act has been bolstered with new regulations to criminalize money laundering.
• Financial Institutions Act of 2001: The Financial Institutions Act has also undergone amendments to strengthen AML/CFT measures.
• Counter-Terrorism Act of 2007: Introduced in 2007, this act demonstrates Palau’s commitment to combating terrorism financing.
• Cash Courier Disclosure Act of 2007: This act requires cash couriers to disclose large cash transactions, further enhancing transparency and preventing illicit financial activities.

Explicit Criminalization of Money Laundering

The offense of money laundering is now explicitly criminalized in the MLPCA, underscoring Palau’s commitment to combating illegal financial activities. This move demonstrates the country’s dedication to upholding international standards and best practices in AML/CFT efforts.

Conclusion

Palau’s strengthened AML/CFT legislative framework is a significant step forward in combating terrorism financing and money laundering. The introduction of new regulations and amendments to existing laws highlights the country’s commitment to maintaining a robust and effective AML/CFT regime.