Providing measures to protect the interests of consumers of financial services, to prevent systemic risk to the financial system, to provide sufficient scope for market forces to operate in the field of financial services, and to protect the reputation of the Republic in the international financial community, and establishing rules for the licensing, supervision and regulation of financial institutions.
The mission of the Palau Financial Services Regulation (PFSR) is to establish and maintain a financial regulatory and supervisory system for the Republic of Palau, consistent with international standards, which promotes a stable banking and financial sector that facilitates economic growth and development within the Republic of Palau.
Welcome to the official website of the Republic of Palau Financial Services Regulation (PFSR). The PFSR is responsible for the oversight, supervision and regulation of the Republic of Palau’s financial sector. As the Executive Commissioner I am tasked with ensuring that all rules and regulations promulgated in the Financial Institutions Act of 2001, as amended, are abided by and maintained. At present, we monitor and regulate seven banks in Palau and are in the process of developing regulatory policies pertaining to other types of financial institutions as defined in the Financial Institutions Act.
The Financial Institutions Act (the Act) was approved by then President Tommy E. Remengesau, Jr., and came into effect on June 19, 2001 and was strengthened by subsequent amendments in August 2007. The following year, in July 2008, a series of Prudential and Administrative regulations were duly approved by the PFSR Governing Board. The Act and the PFSR Regulations have greatly enhanced the Commission’s ability to effectively and efficiently monitor the financial sector’s performance and enforce those requirements established in the amended Financial Institutions Act.
The PFSR was established and operates as an independent agency. It is overseen by a Governing Board that functions as a policymaking body, and managed by myself as the Executive Commissioner. In addition, we currently have one Bank Examiner and an Administrative Officer who assist in the day-to-day operation of the office.
Tesfalem Aatifa Executive Commissioner
P.O. Box 6051 Koror, Palau 96940
Phone: 680-488-1326/2657 • Monday – Thursday, 8:00 am – 6:00 pm