The story
Palau adopted a constitution on January 1, 1981. There were disagreements between the United States and Palau over the constitution.
Palau witnessed several instances of political violence in the 1980s. The republic's first president, Haruo I. Remeliik, was assassinated in 1985; John Ngiraked, an earlier presidential campaign rival of Remeliik, was found to be complicit in the crime. Palau's third president, Lazarus Salii, committed suicide in August 1988 amid bribery allegations. Salii's personal assistant had been imprisoned several months earlier after being convicted of firing shots into the home of the Speaker of the House of Delegates.
Palau gained independence from the United Nations trusteeship administered by the United States on 1 October 1994 and entered a Compact of Free Association with the United States.
The Senate passed legislation making Palau an "offshore" financial center in 1998. Opponents to the legislation voiced fears that the country would become a haven for money launderers and other sorts of criminal activity. In December 1999, a group of major international banks banned U.S. dollar-denominated transactions involving Palau and the other Pacific island states of Vanuatu and Nauru.
From Wikipedia’s article on Politics of Palau, shared under CC BY-SA 4.0.3
