{
  "title": "Republic of the Marshall Islands: Selected Issues",
  "publication": "IMF Staff Country Reports, September 10, 2018",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2018/09/10/republic-of-the-marshall-islands-selected-issues-46217",
  "canonical": "https://www.imf.org/en/publications/cr/issues/2018/09/10/republic-of-the-marshall-islands-selected-issues-46217",
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  "summary": "This Selected Issues paper discusses correspondent banking relationships (CBRs) pressures on the Republic of the Marshall Island (RMI). RMI’s two banks currently have access to the US financial system.",
  "sections": [
    {
      "heading": "Overview",
      "content": "- Publication date: September 10, 2018\n- Publication type: IMF Staff Country Reports; Country Report No. 2018/271, Issue: 271, Volume: 2018\n- Pages: 21\n- DOI: https://doi.org/10.5089/9781484375785.002\n- ISBN: 9781484375785\n- ISSN: 1934-7685\n- Subject areas: Anti-money laundering and combating the financing of terrorism (AML/CFT), Banking, Blockchain and DLT, Correspondent banking, Crime, Currencies, Financial services, Money, Technology, Virtual currencies"
    },
    {
      "heading": "Correspondent Banking Relationships (CBRs) pressures — key findings",
      "content": "- RMI’s two banks currently have access to the US financial system.\n- Weak implementation of the anti-money laundering and combating the financing of terrorism (AML/CFT) framework by the authorities contributes to CBR pressures in RMI.\n- The termination of BOMI’s CBR with First Hawaiian Bank would be expected to have significant negative economic repercussions without alternative arrangements."
    },
    {
      "heading": "Banking sector characteristics described",
      "content": "- The Bank of the Marshall Islands (BOMI) is a domestic financial institution providing banking services to a substantial portion of the population.\n- BOMI operates five branches throughout RMI, including on the Kwajalein Atoll.\n- RMI, through the Trust Company of the Marshall Islands, provides offshore corporate and maritime registry services."
    },
    {
      "heading": "AML/CFT implementation and reform steps",
      "content": "- The RMI authorities are strengthening the effectiveness of the AML/CFT framework.\n- Additional steps should be taken to further lower the risk of losing the last US dollar CBR.\n- Once the national risk assessment is completed, an action plan should be developed to address the identified risks."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Strengthen implementation and effectiveness of AML/CFT controls to reduce CBR pressures.\n- Complete the national risk assessment as a priority.\n- Develop and implement an action plan based on the national risk assessment to address identified AML/CFT risks and lower the likelihood of losing US dollar correspondent banking relationships.\n\nSource: Republic of the Marshall Islands: Selected Issues (IMF Staff Country Reports), September 10, 2018.\n\n---\n\n Content in this bundle\n\n- Country Report\n  - Country Report (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Country Report (PDF){rel=\"external\" type=\"application/pdf\"}"
    }
  ],
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    "Published: September 10, 2018",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9781484375785.002",
    "Publication date: September 10, 2018",
    "Publication type: IMF Staff Country Reports; Country Report No. 2018/271, Issue: 271, Volume: 2018",
    "Pages: 21",
    "DOI: https://doi.org/10.5089/9781484375785.002",
    "ISBN: 9781484375785",
    "ISSN: 1934-7685",
    "Subject areas: Anti-money laundering and combating the financing of terrorism (AML/CFT), Banking, Blockchain and DLT, Correspondent banking, Crime, Currencies, Financial services, Money, Technology, Virtual currencies",
    "RMI’s two banks currently have access to the US financial system.",
    "Weak implementation of the anti-money laundering and combating the financing of terrorism (AML/CFT) framework by the authorities contributes to CBR pressures in RMI.",
    "The termination of BOMI’s CBR with First Hawaiian Bank would be expected to have significant negative economic repercussions without alternative arrangements.",
    "The Bank of the Marshall Islands (BOMI) is a domestic financial institution providing banking services to a substantial portion of the population.",
    "BOMI operates five branches throughout RMI, including on the Kwajalein Atoll.",
    "RMI, through the Trust Company of the Marshall Islands, provides offshore corporate and maritime registry services.",
    "The RMI authorities are strengthening the effectiveness of the AML/CFT framework.",
    "Additional steps should be taken to further lower the risk of losing the last US dollar CBR.",
    "Once the national risk assessment is completed, an action plan should be developed to address the identified risks.",
    "Strengthen implementation and effectiveness of AML/CFT controls to reduce CBR pressures.",
    "Complete the national risk assessment as a priority.",
    "Develop and implement an action plan based on the national risk assessment to address identified AML/CFT risks and lower the likelihood of losing US dollar correspondent banking relationships.",
    "**Country Report**"
  ],
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