Anti Money Laundering (AML) in Guam

While Guam is not regarded as a regional financial center, money laundering has become a growing problem. Guam is considered a territory of the United States; therefore, the US is responsible for monitoring and regulating Anti Money Laundering (AML) activities in Guam and has recently begun to focus more on the money laundering threats posed by the commonwealth to the US.

The Financial Crimes Enforcement Network (FinCEN) serves as the US’s Financial Intelligence Unit (FIU) and subsequently acts as the FIU for Guam. The designation of HIFCAs was outlined in the Money Laundering and Financial Crimes Act of 1998 and put into affect as an addition to the Bank Secrecy Act.

The Economy of Guam

The Guam economy depends largely on US military spending and tourism. The tourist industry has grown significantly and has become the largest income source, following national defense. The economy continues to experience expansion in both its tourism and military sectors.

The Government of Guam remains the largest employer on the island (exceeding the tourism industry and the federal military), with a payroll and retirement burden that has led to an ongoing and growing budget deficit in recent years.

Banking in Guam

Due to the fact that Guam is a commonwealth of the US, there is no Central Bank in Guam. Instead, the US Federal Bank acts as Guam’s Central Bank, regulating Monetary and Credit policies.

The Federal Reserve is the Central Bank of the US, created in 1913. The main responsibilities of the Federal Reserve are maintaining monetary policy; ensuring the safety and soundness of the nation’s banking and financial system; maintaining the stability of the financial system and containing systemic risk that may arise in financial markets; and providing certain financial services to the US government, to the public, to financial institutions, to foreign official institutions, and to Guam.

Guam's Currency

The currency in Guam is the United States Dollar (USD) due to the fact that Guam is a commonwealth country of the US. The Bureau of Engraving and Printing (BEP) issues the USD banknotes and the United States Mint issues all USD coinage. The United States Department of Treasury is in charge of overseeing the production of both departments.

The USD is issued in denominations of 1, 2, 5, 10, 20, 50 and 100 dollar bills.

Other Key Statistics about Guam

Time Zone: UTC+10 (10 hours ahead of Washington, DC during Standard Time).

Location: Oceania, island in the North Pacific Ocean, about three-quarters of the way from Hawaii to the Philippines.

Population: 183,286 (July 2011 est.).

Labor Force: Approximately 26% works in agriculture, 10% in industry and 64% in services industries. The unemployment rate is 11.4%.

Languages Spoken: English 38.3%, Chamorro 22.2%, Philippine languages 22.2%, other Pacific island languages 6.8%, Asian languages 7%.

Trade Organizations: Guam is not a member of the World Trade Organization (WTO).