KOROR (Palau Horizon) — The International Monetary Fund delegation that visited Palau last month recommended the speedy implementation of the new banking regulations.
The IMF team also suggested immunity for banking institutions.
“Currently, the law does not provide immunity for the banks and the IMF has expressed concern about it,” tax counsel Ken Barden said in an interview.
According to Barden, the government is expecting a final draft of assessment report from the IMF.
The Palau government is also anticipating other recommendations from the IMF, he added.
The IMF team arrived in Palau last month to review the country’s newly enacted banking laws.
Local government officials met with them and discussed the provisions of the new statutes. The IMF representatives also met with the officials of at least three banking institutions.
The IMF has been sending representatives to Palau to regularly evaluate its banking laws.
Last year, President Tommy Remengesau signed five new banking laws to protect the country from money laundering activities.
As a result, the country regained the confidence of the international community, he said.
