Introduction to the FIU

The Financial Intelligence Unit (“FIU”) was established in 2001 with the enactment of the Money Laundering and Proceeds of Crime Act of 2001. The Office of the Attorney General initially housed the FIU, followed by the Financial Institutions Commission (“FIC”) in 2008 by executive order when the Money Laundering and Proceeds of Crime was amended. In 2014, with the latest amendment to the Money Laundering and Proceeds of Crime Act, the FIU became a fully independent agency.

The FIU is not only responsible for the initial intelligence investigations of suspected proceeds of crime and terrorist property, but is also responsible for ensuring that entities subject to its supervision comply with the anti-money laundering and counter terrorism financing (“AML/CFT”) requirements stipulated in the amended Money Laundering and Proceeds of Crime Act.  Under the Money Laundering and Proceeds of Crime Act, the FIU supervises Financial Institutions and Designated Non-Financial Businesses and Professions (“DNFBPs”).  DNFBPs include attorneys, high value dealers, and real estate agents, among other sectors. The FIC is also a named supervisor in the Money Laundering and Proceeds of Crime Act and has traditionally supervised the financial institutions.

As member of the Asia/Pacific Group (“APG”), a Financial Action Task Force (“FATF”)-style regional body, the Republic of Palau (“ROP”) works towards compliance with the FATF 40 Recommendations and 11 Immediate Outcomes. The FIU actively supports the ROP’s efforts towards compliance with these international AML/CFT recommendations and norms.

The FIU is headed by a Director, appointed by the Governing Board of the FIC. The FIU is additionally supported by a Senior Intelligence Analyst, a Financial Institutions AML/CFT Compliance Officer, a DNFBP and Virtual Asset Service Provider (“VASP”) Compliance Officers, and an Administrative Specialist.

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FIU Strategic Plan FY 2023 – 2028

In September 2022, the FIU and the Governing Board of the FIC undertook a two-day strategic planning retreat. Adopted in April 2023, the Palau FIU Strategic Plan FY 2023 -2028 is the outcome of the strategic planning session.