Fund Security Strengthened, Custodian Replaced, Investigation Continues
WASHINGTON (October 26, 2017) – Chairman Nik Pula of the Trust Fund for the People of the Republic of the Marshall Islands (the Trust Fund) confirmed this week that funds compromised by cyber-attacks at State Street Financial Services Company (State Street) have been fully restored and diligence stepped up after the discovery of fraudulent withdrawals of more than $600,000.
“Trust Fund staff first detected irregularities in early July 2017 and alerted custodian State Street leading to the discovery of fraudulent activity in the Trust Fund.” said Chairman Pula. “All Trust Fund members and staff have been collaborating closely with State Street in monitoring and resolving the situation with the Republic of the Marshall Islands (RMI) Attorney General, RMI Auditor, and other officials from the Marshall Islands, Taiwan, and U.S. governments,” continued Pula. “Together we will continue to protect and maintain the integrity of the Trust Fund for the People of the Republic of the Marshall Islands.”
The Trust Fund Chair and Members continue to be fully apprised of the situation and will continue to be diligent in protecting the Trust Fund.
The value of the Fund as of September 30, 2017, preliminary and unaudited for fiscal year 2017, was $354,656,481.
As provided for under the Compact of Free Association agreement, as amended (U.S. Public Law 108-188), the Trust Fund was established to contribute to the economic advancement and long-term budgetary self-reliance of the people of the Republic of the Marshall Islands when annual grant assistance under the Compact expires after fiscal year 2023.