Palau Country Report
Reports of demands for bribes continue to affect public procurement. However, in January 2017 Palau hosted the UN anti-corruption consultation aimed at strengthening the UN convention against corruption, signalling a new seriousness about an issue that jeopardises foreign investment. Palau also continues to participate in the UN Pacific Regional Anti Corruption Project, which supports Pacific Island nations in creating more transparent governments, as the second phase of the project (2016–2020) is nearing completion. Palau's very small population of roughly 20,000 poses a negligible risk of violent protests and disruption of business activity.
Homicide rates in Palau are near zero and felonies are dominated by 'misconduct', mostly abuse of public office. Misdemeanours are mostly minor violations of traffic regulations and court injunctions.