Editing Politics of Nauru (section)

===Offshore banking===
In this regard, the government has tried to develop the island into an [[offshore financial centre]], imitating the success of the Bahamas and other island nations around the world that have emerged as major [[offshore banking]] centres. The government has also invested in property on other islands and the United States through its [[Nauru Phosphate Royalties Trust]].

Over the course of recent years, however, offshore banking institutions and instruments have come under increasing scrutiny by international bodies seeking to make international finance a more transparent system. Nauru, as a result, has been a casualty of this movement.

In December 1999, four major international banks banned dollar transactions with Nauru.<ref>{{Cite web |url=http://pidp.org/archive/1999/December/12-21-up1.htm |title=WORLD BANKS ISOLATE THREE PACIFIC COUNTRIES: NAURU, PALAU AND VANUATU ACCUSED OF MONEY LAUNDERING - December 21, 1999 |access-date=22 September 2013 |archive-url=https://web.archive.org/web/20130928211546/http://pidp.org/archive/1999/December/12-21-up1.htm |archive-date=28 September 2013 |url-status=dead }}</ref> The [[United States Department of State]] issued a report identifying Nauru as a major money laundering centre, used by narcotics traffickers and organized crime figures.