Micronesia, Federated States of

New Documents

The U.S. filed an indictment in the Middle District of Georgia that charges Erica Montgomery, Sandra Anderson, Leo Frank Thomas, Yolanda Thomas, Dorothy Webb and Kristina Parker with allegedly participating in a scheme to defraud U.S. student loan programs of more than $12 million.

The British Virgin Islands issued the Lebanon (Sanctions) (Overseas Territories) Order 2020, which modifies the sanctions against Lebanon pursuant to the Sanctions and Anti-Money Laundering Act 2018.

News

Enforcement Actions

The Office of Foreign Assets Control of the U.S. Treasury Department and the Omaha, NE-based multinational conglomerate holding company entered into a settlement concerning the company’s potential civil liability for trade-related transactions and exports to Iran in violation of U.S. sanctions.

The Financial Crimes Enforcement Network assessed a $60 million civil money penalty against Larry Dean Harmon, the founder and primary operator of Helix and Coin Ninja, for violations of the Bank Secrecy Act and related implementing regulations.


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