Koror, Palau – June 27, 2023- The Republic of Palau Financial Intelligence Unit (“FIU”) is notifying the public that it has published to its website the Financial Intelligence Unit Notice of Virtual Asset Service Provider Requirement to Comply with the Money Laundering and Proceeds of Crime Act and Regulations.

Among its duties, the FIU is responsible for ensuring that entities subject to its supervision comply with the Money Laundering and Proceeds of Crime Act (“MLPCA”).  Under 17 P.N.C.A. §3302(l)(4) of the MLPCA, Virtual Asset Service Providers (“VASPs”) as defined by the Financial Action Task Force (which includes virtual asset exchanges, custodial wallets, etc) fall under the definition of Financial Institution and, as a result, are subject to FIU supervision.  VASPs that engage in business within the Republic of Palau are required to comply with the MLPCA and will be subject to administrative, civil, and/or criminal sanctions if they do not.

The FIU is in the process of updating its website (palaufiu.org) to better reflect its supervisory activities.  In the meantime, should any entity that falls under FIU supervision—Financial Institutions, Designated Non-Financial Businesses and Professions (“DFNBPs”), or VASP—have any questions, it may reach the FIU at 488-5080.

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