FSM financial intelligence unit
The Federated States of Micronesia's financial intelligence unit sits within the National Police, under the Department of Justice, and receives suspicious transaction reports from banks.
Oceania · Country coverage
AML/CTF Compliance in the Federated States of Micronesia
The Federated States of Micronesia regulate money laundering through Title 11 of the FSM Code, supported by a financial intelligence unit within the Department of Justice/National Police. See the obligations and how MemberCheck supports them.
Last updated
Screening coverage for the Federated States of Micronesia
- Sanctions & PEP screening
- Adverse media checks
- Customer identity verification
- Jurisdiction risk checks
- Ongoing monitoring
Key facts
AML supervisor / FIUFIU within the FSM Department of Justice/National Police
FATF statusAPG observer (not a full APG member)
Primary legislationMoney Laundering and Proceeds of Crime (Title 11, Chapter 9, FSM Code)
Overview
AML/CTF compliance in the Federated States of Micronesia.
The Federated States of Micronesia regulate money laundering through the money laundering and proceeds of crime provisions in Title 11, Chapter 9 of the FSM Code, supported by a financial intelligence unit that sits within the National Police, under the Department of Justice, and receives suspicious transaction reports from banks.
Regulated entities must apply customer due diligence, identify beneficial owners, monitor relationships, and report suspicious activity to the FIU, alongside supervision from the FSM Banking Board. Supervisors expect a designated compliance officer, sound internal controls, and staff training.
MemberCheck helps teams meet these obligations by screening customers and entities against global sanctions, PEP, and adverse-media data, verifying identities, and monitoring risk continuously, with a clear audit trail behind every decision.
Regulation
All solutions →Key laws and regulators.
Money Laundering and Proceeds of Crime
The FSM's principal AML provisions, set out in Title 11, Chapter 9 of the FSM Code, criminalising money laundering and setting the basis for reporting obligations for financial institutions and other reporting entities.
Banking Board oversight
The FSM Banking Board supervises licensed financial institutions for AML/CTF compliance, working alongside the FIU.
APG observer status
The Federated States of Micronesia are an observer (not a full member) of the Asia/Pacific Group on Money Laundering, a FATF-style regional body, and have not yet completed a mutual evaluation.
Obligations
What regulated businesses must do.
- Apply customer due diligence and identity verification
- Identify beneficial owners of corporate customers
- Report suspicious transactions to the FIU
- Conduct ongoing monitoring of customer relationships
- Maintain internal controls and a compliance officer
- Maintain records and provide staff training
1,000+
Global watchlists screened
<1s
Average screening response
24h
Watchlist refresh cycle
195
Countries covered
FAQ
Common questions.
Who supervises AML/CTF in Micronesia?
A small financial intelligence unit within the National Police, under the Department of Justice, receives suspicious transaction reports from banks, while the FSM Banking Board supervises licensed financial institutions for AML/CTF compliance.
What is the main AML law in Micronesia?
Money laundering and proceeds of crime provisions, set out in Title 11, Chapter 9 of the FSM Code, set the basis for customer due diligence, recordkeeping, and reporting obligations for regulated entities in the Federated States of Micronesia.
Is Micronesia a member of FATF?
The Federated States of Micronesia is not a full member of the Asia/Pacific Group on Money Laundering (APG), a FATF-style regional body — it holds observer status and has not yet completed a mutual evaluation. It is not a direct member of FATF, and this is not the same as full APG membership held by many neighbouring Pacific jurisdictions.
How does MemberCheck support AML compliance in Micronesia?
MemberCheck screens customers and entities against global sanctions, PEP, and adverse-media data, verifies identities, and monitors risk continuously, with an audit trail behind every decision.
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