55. Which institution(s) receives financial reports from political parties and/or candidates?

(a) There is established a commission to be known as the Ethics Commission. The Commission shall consist of three (3) members appointed by the President with the advice and consent of the Senate. The term of each member shall be four (4) years. Members of the Commission shall hold no other public office or public employment. The chairman of the Commission shall be elected by a majority of the Commission. Members of the Commission may be removed by the President only for good cause. Vacancies shall be filled for the remainder of any unexpired term in the same manner as the original appointment. Commission members shall be compensated at a rate of thirty five dollars ($35) for each meeting the Commission member attends.

(b) The Commission shall adopt regulations to carry out the purposes of this chapter.

(c) The Commission shall prescribe and supply the forms for statements and reports required by this chapter.

(d) The Commission shall determine whether required documents have been filed and, if so, whether they comply on their face with the requirements of this chapter.

(e) The Commission shall notify promptly all persons who have failed to file a report or statement in the form and at the time required by this chapter.

(f) The Commission may employ staff, including legal counsel to advise and represent the Commission in actions filed by or against it, and to assist the Commission to issue advisory opinions upon the request of any person governed by this chapter as to whether the facts and circumstances of a particular case constitute or will constitute a violation of the chapter.

(g) The Commission shall initiate, receive, and consider charges concerning alleged violations of this chapter, initiate or make investigations, and hold hearings.

(h) The Commission may subpoena witnesses, administer oaths and take testimony relating to matters before the Commission and require the production for examination of any books or papers relative to any matter under investigation or in question before the Commission. Before the Commission may exercise any of the powers authorized herein with respect to any investigation or hearing, it shall, by a vote of a majority of its members, define the nature and scope of its inquiry.

(i) On an affirmative vote of a majority of its members, the Commission shall have authority to bring civil actions on its own behalf, and take other actions consistent with the law to enforce the provisions of this chapter.

(j) The members of the Commission and its staff may not take an active part in political management or in political campaigns during their term of office or employment, nor may they make contributions to political campaigns during their term of office or employment

Source: Article 608, Palau National Code, Title 33 Public Employment Chapter 6 Code of Ethics revised edition April 2014

The Ethics Commission receives financial reports from candidates and oversights the requirements of the Code of Conduct for Public Employees.

There are no political parties in Palau and no legal provisions for the funding and expenditure of political parties