The Financial Intelligence Unit is a government organization that monitors all financial activity in Palau. They investigate the financial activity on the island in order to identify possible activities relating to money laundering or terrorist financing. The FIU was established in 2001, and was moved from the Office of the Attorney General to the Financial Institutions Commission in 2008. Palau became a member of the Asia/Pacific Group on Money Laundering in June 2002.
The definition of Money Laundering constitutes one or more of the following:
- the conversion or transfer of property for the purpose of concealing or disguising the illegal origin of such property or assisting any person who is involved in the commission of a predicate offense to evade the legal consequences of his or her actions
- the concealment or disguise of the illegal nature, source, location, disposition, movement, or ownership of property by any person who knows that the property constitutes the proceeds of crime
- the acquisition, possession, or control of property by any person who knows that the property constitutes the proceeds of crime