Marshalls Islands on High Alert as Financial Terrorism Threat Looms Large
International Experts Visit Marshall Islands to Combat Financial Terrorism
In May 2016, a team of five international experts from the Financial Services Volunteer Corps (FSVC) descended upon the Marshall Islands for high-level consultations with government officials, commercial banking sector representatives, and other key stakeholders. This visit marked the latest chapter in a collaborative effort between the FSVC and the Marshall Islands Government, which began earlier this year with a preliminary needs assessment and a roundtable discussion in Washington D.C. in April 2016.
Assessing the Current State of the Financial Sector
The primary objective of the mission was to gauge the current state of the financial sector in the Marshall Islands and provide expert advice on how best to maintain access to the global financial system. The driving force behind this concern is the looming threat of financial terrorism, which has prompted the sole correspondent bank serving the only local bank operating in the RMI to consider terminating its services.
Identifying Vulnerabilities
During their consultations, the FSVC volunteer experts delved into the local counterparts’ understanding of banking supervision procedures, reporting capabilities, and money laundering risks. They sought to identify vulnerabilities that could be exploited by nefarious actors, such as:
- Weaknesses in banking supervision procedures
- Inadequate reporting capabilities
- Lack of effective measures to prevent money laundering
Strengthening Defenses Against Financial Terrorism
With financial terrorism posing a significant threat to global stability, the Marshall Islands must take swift action to strengthen its defenses and prevent would-be terrorists from exploiting its financial system for illicit purposes. The FSVC experts will provide expert advice on how to:
- Improve banking supervision procedures
- Enhance reporting capabilities
- Implement effective measures to prevent money laundering
Conclusion
The visit by the FSVC international experts marked a significant step forward in the Marshall Islands’ efforts to combat financial terrorism and maintain access to the global financial system. The collaboration between the FSVC and the Marshall Islands Government is crucial in addressing the looming threat of financial terrorism and ensuring the stability of the global financial system.