enactment of such comprehensive legislation, these countries generally dealt with terrorism by adopting provisions repressing specific acts, notably those criminalized under the international conventions on the suppression of terrorist acts, and by relying on general criminal law provisions, such as those relating to murder, sabotage, or unlawful use of explosives. Countries such as Canada, the United Kingdom, and the United States have adopted comprehensive anti-terrorismlegislation. As the Canadian Minister of Justice put it before the Canadian Senate Committee
financial system and the monetary policy framework, and to strengthen the independence of the central bank. They welcomed the anti-terrorismlegislation and the central bank’s directives on anti-money laundering. They recommended that the draft legislation on anti-money laundering, consistent with international standards, be finalized expeditiously.
To promote private sector activity, Directors underscored the need to improve the business environment—in particular, to streamline administrative procedures, strengthen the judicial system, and implement the provisions of
financial sector supervision and AML/CFT efforts for the offshore as well as the onshore sectors. Together with other parts of the Kingdom of the Netherlands, a concerted effort is underway to introduce more explicit and focused anti-terrorismlegislation and regulation.
Furthermore, the Netherlands Antilles is resolved to remove the perception created by placement of the jurisdiction in the weakest category of the list of offshore financial centers, published by the Financial Stability Forum (FSF).
Overall, the legal and institutional framework for financial sector
This paper presents key findings of the Assessment of the Supervision and Regulation of the Financial Sector for Palau. Palau’s government has demonstrated a clear political commitment to antimoney laundering. In addition to being a signatory to the Honiara Declaration, it has more recently volunteered to participate in an initiative led by the Forum Secretariat and the Asia/Pacific Group on Money Laundering to assist the countries in the Pacific region to put in place effective measures for antimoney laundering, combating terrorism financing, and financial sector fraud.
This paper reviews key findings of the Detailed Assessment of Observance of Standards and Codes in the Financial Sector of Palau. The assessment reveals that there is a relatively low level of compliance with the Basel Core Principles for Effective Banking Supervision. Palau is compliant with one of the Core Principles, largely compliant with six and materially noncompliant with seven Core Principles. The status of legal protection for supervisors has been assessed as compliant, but is subject to an amendment to be passed by the Congress shortly.
join the Asia/Pacific Group on Money Laundering. In response to the calls by various international bodies to have in place measures to combat the financing of terrorism, Palau is in the process of drafting anti-terrorismlegislation and has set up a Task Force on Anti-Terrorism and Homeland Security.
22. The mission reviewed the provisions of the Financial Institutions Act 2001 (FIA) and is of the view that the FIA is adequate with respect to the legal and institutional framework for the supervision and integrity standards for banks.
23. The assessment, however
the 12 institutions which have applied for a banking license under the “grandfathering” provisions of the FIA;
Enact the anti-terrorismlegislation as soon as possible and issue regulations for the registration of over-the-counter exchange dealers.
III. T echnical A ssistance N eeds
22. Based on its findings, the mission is of the view that banking supervision and regulation should receive first priority in Palau’s technical assistance (TA) needs. In this connection, the mission reviewed the work program for the MAE Banking Supervision Advisor assigned
2003 is generally good;
(b) The regulations need to be reviewed as parts of them may be ultra vires the Acts they are made under;
(c) Anti-terrorismlegislation must be afforded priority;
(d) It is too soon to determine whether the enforcement of the legislation is adequate.
97. We believe it inappropriate to regard the lack of a prosecution under the legislation as a negative factor. The Cook Islands offshore jurisdiction has a limited focus and if the number of international banking licenses issued is few and the core business remains international trusts
deposits of the Icelandic banks against claims and the British authorities froze the assets of Landsbanki under anti-terrorismlegislation, and initially also named those of the Central Bank and the Republic, which had serious repercussions for payments and settlement. This order temporarily also applied to assets of the Central Bank of Iceland. Furthermore, proceeds from exports stopped flowing partly because foreign banks became reluctant to transfer money to the domestic banks and partly because exporters chose to keep their money abroad. For a period, this
The aim of this empirical study is to describe and provide analysis on the experience of managing capital flows in Iceland and the Baltic countries. During the build-up of the crisis, there were shortcomings in macroeconomic policies and in the policy mix, as well as in financial supervision in the countries covered. While the use of traditional macroeconomic and structural policies was far from exhausted, recognizing that there are no substitutes for sound macroeconomic policies, with an IMF framework on capital flows in place prior to the crisis, it might have been easier for the IMF and national policymakers to identify accelerating problems at an early stage and address them with targeted measures.