The Vanuatu Financial Services Commission (VFSC) has been recognised as an Associate Member of the International Organization of Securities Commissions (IOSCO), marking a major milestone for the country’s financial regulator and enhancing its standing within the global financial community.
IOSCO is the international standard-setting body for securities regulation, bringing together regulators from some of the world’s largest and most sophisticated financial markets.
While IOSCO Associate Membership does not constitute an endorsement of any jurisdiction or regulated entity, VFSC’s acceptance reflects growing international confidence in Vanuatu’s financial regulatory systems. It does not imply approval of any financial products or services operating in or from the country.
VFSC Commissioner Branan Karae described the achievement as the result of years of sustained strategic effort.
“This is a very prestigious organisation. The application process took approximately three years, involving detailed assessments and engagement with IOSCO sub-committees before final approval by the IOSCO Board,” Karae said. “After a lengthy process, we are very pleased to be recognised as an IOSCO Associate Member.”
According to Karae, the timing of the recognition is particularly significant as Vanuatu prepares for a Financial Action Task Force (FATF) Mutual Evaluation Review (MER) in November.
The fifth round of Vanuatu’s Asia/Pacific Group on Money Laundering (APG) Mutual Evaluation Review will assess the country’s anti-money laundering (AML) and counter-terrorism financing (CTF) frameworks against the FATF’s 40 Recommendations.
“The IOSCO Associate Membership will help elevate Vanuatu’s international standing, especially ahead of the FATF APG MER scheduled for November 2026,” Karae said. “It is one of the strategic steps demonstrating our commitment to international standards and cooperation in combating AML, CTF and other financial crimes.”
Vanuatu has faced ongoing challenges relating to international perceptions of its financial sector, including difficulties with correspondent banking relationships.
Karae said the VFSC’s IOSCO Associate Membership helps counter outdated and unhelpful narratives.
“Being part of this standard-setting body shows that Vanuatu is serious, willing to engage and prepared to meet global expectations,” he said. “It improves how the world views our regulatory institutions.”
As an IOSCO Associate Member, the VFSC will be able to participate in IOSCO committees, engage with international securities regulators and take part in capacity-building programmes aimed at strengthening regulatory effectiveness.
Karae confirmed that the VFSC has already been invited to attend upcoming IOSCO meetings, including an international meeting scheduled to take place in Sydney in March 2026.
“For the first time, we have been invited to attend IOSCO meetings and participate in strategic committees and processes,” he said. “This gives us the opportunity to contribute, learn and build relationships with regulators from around the world.”
He added that the VFSC intends to move towards full IOSCO membership, which requires signing the IOSCO Multilateral Memorandum of Understanding — the global benchmark for cross-border enforcement cooperation and information sharing.
“We see Associate Membership as a stepping stone,” Karae said. “We are committed to doing the work required to become a full IOSCO member," he said.
The commissioner also highlighted VFSC’s expanding international engagement, including work on memoranda of understanding with overseas regulators, including institutions within the European Union.
“Many international bodies do not know much about the Pacific,” Karae said. “Once you are part of these networks, it becomes much easier to engage, share information and demonstrate compliance with international standards.”
The VFSC’s leadership in virtual asset regulation and financial market supervision is also helping to strengthen its international profile and strategically position the statutory authority.
Karae described the IOSCO recognition as an important validation of the commission’s regulatory direction.
“This is an exciting time for the VFSC,” he said. “It shows that despite being small and geographically remote, Vanuatu can meet global regulatory standards and take its place alongside other international regulators.”
He said the VFSC would continue strengthening its regulatory frameworks, promoting transparency and actively participating in regional and global initiatives to support financial integrity and market confidence.
The VFSC remains committed to collaborating with the private sector on future initiatives.
“The VFSC acknowledges and appreciates the Financial Centre Association of Vanuatu’s valuable input, which contributed to our successful admission as an IOSCO Associate Member,” Karae said.
He also acknowledged the VFSC’s supervisory team, led by Joshua Tari, for their technical work and efforts in preparing the successful submission.
