The Marshall Islands and Palau feature on the United States' new list of countries posing a significant risk of money laundering and the processing of profits from serious crimes and drug trafficking.
The Taxation Information website reports that the State Department's annual International Narcotics Control Strategy Report divides 200 countries into three categories.
The Marshall Islands is among 68 countries considered to be vulnerable to money laundering.
Palau has progressed from that category to join 76 others perceived to have experienced a decrease in the amount of money laundered through their financial institutions.
The 66 countries considered most risky include the USA, the UK, Australia, Germany, France, Hong Kong, Japan and Canada.