Micronesia, Federated States of

New Documents

The European Council issued a press release summarizing foreign policy debates amongst member states during the Foreign Affairs Council meeting.

The U.S. Justice Department announced that Pavel Stassi and Aleksandr Skorodumov were sentenced for their roles in a scheme to provide “bulletproof hosting” services to cybercriminals between 2009 to 2015.

News

Enforcement Actions

The Malta Financial Intelligence Analysis Unit issued an administrative measure imposing two fines totaling €337,422 on the Sliema, Malta-based financial institution for breaches of the Prevention of Money Laundering and Funding of Terrorism Regulations.

The Financial Supervisory Authority of Sweden, Finansinspektionen, issued an injunction to take remedial action against the Sweden-based subsidiary of Danske Bank A/S, requiring it to assess how its products and services may be used for money laundering or terrorist financing.


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