VFSC achieves IOSCO Associate Membership, boosts global standing

February 16, 2026 10:04 pm | Posted in Business News | Share now TwitterFacebook

The Vanuatu Financial Services Commission (VFSC) has been recognised as an Associate Member of the International Organization of Securities Commissions (IOSCO), strengthening the country’s financial regulator’s international standing.

IOSCO is the global standard-setting body for securities regulation, bringing together regulators from some of the world’s largest and most developed financial markets. While Associate Membership does not constitute an endorsement of any jurisdiction or regulated entity, VFSC’s acceptance demonstrates growing international confidence in Vanuatu’s regulatory framework, without implying approval of any financial products or services operating in or from the country.

VFSC Commissioner Branan Karae said the achievement reflects years of sustained effort by the commission.

“This is a very prestigious organisation. The application process took around three years, involving detailed assessments and engagement with IOSCO sub-committees before final approval by the IOSCO Board,” Commissioner Karae said. “We are very pleased to now be recognised as an IOSCO Associate Member.”

The recognition comes as Vanuatu prepares for the upcoming Financial Action Task Force (FATF) Mutual Evaluation Review (MER) in November 2026. The fifth round of Vanuatu’s APG MER will assess the country’s Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) frameworks against FATF’s 40 Recommendations.

“The IOSCO Associate Membership will help raise Vanuatu’s international profile, especially ahead of the FATF APG MER review,” Mr. Karae said. “It is an important step in showing our commitment to global standards and cooperation in combating financial crime.”

Vanuatu has faced ongoing challenges related to international perceptions of its financial sector, including difficulties with correspondent banking relationships. Karae said the membership helps counter outdated and unhelpful narratives.

“Being part of this standard-setting body shows that Vanuatu is serious, engaged, and meeting global expectations. It improves how the world views our regulatory institutions,” he said.

As an IOSCO Associate Member, the VFSC can participate in committees, engage with international regulators, and join capacity-building programmes to strengthen regulatory effectiveness. Karae confirmed the VFSC has already been invited to attend upcoming IOSCO meetings, including an international meeting in Sydney in March 2026.

“This is the first time we have been invited to attend IOSCO meetings and contribute to strategic committees. It allows us to build relationships with regulators worldwide, exchange knowledge, and share best practices,” Karae said.

The VFSC plans to pursue full IOSCO membership, which requires signing the IOSCO Multilateral Memorandum of Understanding—the global benchmark for cross-border enforcement and information sharing.

“Associate Membership is a stepping stone. We are committed to completing the work needed for full membership,” Karae said.

VFSC’s international engagement continues to expand, including work on memoranda of understanding with overseas regulators, including those in the European Union.

“Many international bodies have limited knowledge of the Pacific. Being part of these networks makes it easier to engage, share information, and demonstrate compliance with global standards,” Karae said.

The VFSC’s leadership in virtual asset regulation and financial market supervision is also raising its international profile.

“This is an exciting time for VFSC. It shows that despite being small and geographically remote, Vanuatu can meet global standards and stand alongside other international regulators,” Karae said.

He confirmed the VFSC will continue strengthening regulatory frameworks, promoting transparency, and participating in regional and global initiatives to support financial integrity and market confidence.

The VFSC acknowledges collaboration with the private sector, particularly the Financial Centre Association of Vanuatu, which contributed to the successful IOSCO application. Karae also praised the VFSC supervisory team, led by Joshua Tari, for their technical expertise and efforts in the submission.