Micronesia, Federated States of

New Documents

The Swiss Federal Council announced that the National Cybersecurity Centre of the Federal Department of Finance will become a federal office.  

The New York State Department of Financial Services shared a proposed regulation to establish additional licensing procedures for virtual currency businesses.

News

Enforcement Actions

The Office of the Attorney General of Switzerland issued a CHF 4 million penalty against the Swiss company for failing to take necessary and reasonable organizational actions in order to prevent bribery payments to foreign officials in South Africa.

The U.S. Securities and Exchange Commission ordered the Zurich, Switzerland-based electrification and automation technology company to pay a $75 million civil monetary penalty, $58 million in disgorgement, and prejudgement interest of $14,554,267 for violating the Foreign Corrupt Practices Act.


Key Documents

Important Facts

  • The U.S. State Department identifies the Federated States of Micronesia as a monitored jurisdiction. The low level of financial sophistication makes the country at low risk for money laundering, terrorist financing and smuggled products. Corruption extends to directing public contracts and employment to unqualified companies or persons. The amount of proceeds derived from corruption, however, is difficult to estimate. There have been no arrests, prosecutions or convictions for money laundering since the Federated States of Micronesia criminalized the offense in 2001. The jurisdiction's financial intelligence unit, which is dependent for funding and staff on other governmental agencies, consists of a single police officer that has both criminal investigative and regulatory responsibilities. The Federated States of Micronesia has yet to criminalize terrorist financing or terrorist acts.
  • KYC Covered Entities:  Banks, cash dealers, insurers, bingo parlors, trustees, and money transaction services
  • STR Covered Entities: Banks
  • Enhanced Due Diligence Procedures for PEPs: Foreign: Yes; Domestic: Yes
  • Money Laundering Criminal Prosecutions/Convictions: Prosecutions: 1 (2015); Convictions: 1 (2015)
Source: 2016 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i

Technical Effectiveness
Compliant : High :
Largely Compliant : Substantial :
Partially Compliant : Moderate :
Non-Compliant : Low :

* As of July 24, 2018, an observer of APG

BASEL i

Rank : N/A
Score : N/A

TRANSPARENCY INTERNATIONAL i

Rank : N/A
Score : N/A

Tax Justice Network i

Rank : N/A
Score : N/A