PEILAPALAP, Pohnpei: February 25, 2026 — Governor Stevenson A. Joseph received a high-level delegation from the U.S. Department of the Treasury this week, marking the first official visit to Pohnpei by an Official from the U.S. Department of the Treasury.
The meeting at Peilapalap between The Honorable Robert Kaproth, Deputy Assistant Secretary for Asia & Pacific, delegation, and the Joseph-Movick administration, underscored the U.S. Treasury’s expanded role in the economic relationship between the United States and the Federated States of Micronesia (FSM), particularly following recent congressional legislation and shifts in USAID’s regional presence.
Strengthening the Financial Sector
A primary focus of the dialogue was the stability of Pohnpei’s commercial banking sector. Governor Joseph expressed confidence in the local banking environment, noting its resilience due to the existing FDIC relationship.
The leaders discussed the global challenge of Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) compliance. DAS Kaproth addressed concerns regarding financial isolation as commercial banks pull out of smaller jurisdictions. To combat this, the delegation highlighted World Bank initiatives designed to help the FSM strengthen regulatory regimes and maintain vital connections to the U.S. dollar system.
Trust Funds and Financial Management
The delegation and leadership also reviewed the management of Trust Funds and the critical need for robust regulatory frameworks. Governor Joseph emphasized that proper management and the role of national institutions would be vital for the future of financial management.
Governor Joseph concluded the meeting by welcoming the U.S. Treasury’s technical support, noting that the partnership provides the FSM and Pohnpei State Government with the policy choices necessary for a self-reliant economic future.
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