Micronesia, Federated States of

New Documents

Switzerland’s Federal Council announced that the Federal Act on the Adaptation of Federal Law to Developments in Distributed Electronic Register Technology will enter fully into force on Aug. 1, 2021.

HM Treasury’s Office of Financial Sanctions Implementation published a notice concerning amendments made to the identifying information of one individual designated pursuant to the Russia (Sanctions) (EU Exit) Regulations 2019.

News

Enforcement Actions

The Reserve Bank of India issued a monetary penalty of 12 lakh rupees against the Mumbai, India-based financial institution for violating know-your-customer rules.

The Reserve Bank of India issued a monetary penalty of 10 lakh rupees against the Maharashtra, India-based bank for not adhering to the know-your-customer requirements.


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