In January 2016, FSVC entered into a cooperative agreement with the Government of the Republic of the Marshall Islands (RMI) to understand the current status of the financial sector in the RMI, with the object of providing advice as to how best to maintain access to the global financial system. At the request of RMI, FSVC delivered a program to strengthen the financial sector in the Marshall Islands by 1) building the supervisory capacity of the Banking Commission of the RMI, 2) enhancing the financial and compliance capacity of the Bank of the Marshall Islands (BOMI), 3) improving the overall financial development and reputational profile of the RMI, and 4) strengthening the financial ties of the RMI to the global economy.
In May 2016, FSVC sent a team of five experts to the RMI to conduct a series of consultations with officials from the RMI Government, commercial banking sector and other relevant counterparts. The visit was the latest step of work between FSVC and the RMI that began in January 2016 and included a preliminary assessment of needs and a series of meetings in Washington, D.C., in April 2016.
The primary purpose of this mission to the RMI was to understand the current status of the financial sector in the RMI, with the object of providing advice as to how best to maintain access to the global financial system. The most specific impetus for concern arises because of threats that the sole financial institution providing correspondent banking services to the only local bank operating in the RMI is contemplating seriously the termination of such services. During these consultations, the FSVC volunteer experts probed local counterparts about their understanding of bank supervision procedures, reporting capabilities and money laundering risks.
- One assessment report delivered to the Banking Commission, outlining key recommendations for how to address weaknesses in the area of banking supervision and anti-money laundering (AML), among other areas
- 3 representatives from the Banking Commission trained on bank supervision procedures, reporting capabilities and money laundering risks
- 7 banking professionals (Bank of the Marshall Islands and First Hawaiian Bank) trained in banking compliance, SME lending capabilities and AML international best practices
- 3 Ministry of Finance officials trained on strengthening RMI financial sector’s positioning in the international economy