Micronesia, Federated States of

New Documents

The Federal Reserve Board has finalized the implementation details for the new Fedwire Funds Service messaging format, ISO 20022, which is set to be adopted on March 10, 2025.

U.S. President Joseph R. Biden, Jr. issued a proclamation increasing duties on certain items from the Russian Federation and Belarus.

News

Enforcement Actions

The Reserve Bank of India imposed a fine of ₹57.50 lakh on the Chennai, India-based bank for regulatory shortcomings, including non-compliance with the regulator’s anti-fraud directive.

The Federal Deposit Insurance Corporation and the Iowa Superintendent of Banking issued a joint consent order against the Luana, Iowa-based bank, requiring it to address unsound banking practices.


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