US acts against Nauru

The United States Treasury Department has recommended cutting the Pacific island nation of Nauru from the US financial system because it has not acted to curb money laundering.

The proposal would bar US financial institutions from holding accounts for financial institutions in Nauru or foreign banks that provide services to those institutions.

Nauru is on a blacklist maintained by the Paris-based Financial Action Task Force on Money Laundering of nations designated as uncooperative tax havens.