ADB2021-10-052021-10-052019-10N/AN/AN/AN/Ahttps://www.adb.org/publications/pacific-finance-sector-nauruhttps://hdl.handle.net/20.500.14540/5556This brief provides an overview of Nauru’s finance sector, and discusses the key challenges and how they can be addressed. Just over a decade ago, Nauru was a tax haven with hundreds of offshore banks registered in its finance sector. However, lenient banking regulations led to money-laundering and banking licenses were revoked. The Bank of Nauru was closed in 2006. The government recently reestablished banking services in the country, but financial limitations remain a major challenge. Nauru needs to continue efforts to strengthen its framework on anti-money laundering and combat the financing of terrorism, so that the country can reconnect to the international financial system.2Economic dataEconomicsFinance sector developmentFinancial sector