The Republic of the Marshall Islands (RMI) relies on a single correspondent banking relationship with a U.S. bank for access to U.S. dollars and the international financial system. With initial funding support from the U.S. Embassy and direct funding from the Government of the RMI, FSVC implemented a technical assistance program for the RMI from 2017 to 2019 to help the RMI Banking Commission strengthen its supervisory capacity over its financial sector and bank compliance to AML/CFT requirements for correspondent banking.
• Address financial sector challenges faced by the RMI, including those related to the country’s correspondent banking relationships;
• Support the RMI’s adherence to international AML/CFT standards and best practices;
• Strengthen capacity of the banking sector to meet AML/CFT international standards;
• Train RMI Banking Commission’s examiners on examination procedures and examination manuals shared by U.S. regulatory bodies, to provide examiners with better tools to prepare for and conduct examinations;
• Train RMI bank examiners in best practices in on-site and off-site supervision;
• Assist RMI to observe real-time bank examinations conducted by U.S. regulators; and
• Share experiences and knowledge from senior U.S. Federal and State bank examiners, who have conducted similar examinations of U.S. and international banks.
To date, FSVC’s program has helped the RMI improve the supervisory capacity and commercial bank compliance related to AML/CFT. FSVC’s work has directly helped the RMI successfully maintain its correspondent banking relationship with a U.S. bank and strengthened its relationship with U.S. authorities.