Identity verification in Micronesia
Executive summary. The Federated States of Micronesia (FSM) is a US-associated state under the Compact of Free Association (COFA), with a population of approximately 115,000 dispersed across four states (Yap, Chuuk, Pohnpei, Kosrae) and over 600 islands in the western Pacific. The 2023 Amended Compact, signed into law March 8, 2024, renewed economic assistance for 20 years with $6.5 billion in US
Documents supported
(Government IDs from 220+ countries)
Average verification time
Countries covered
(Government-issued IDs validated)
Market overview
FSM has a population of approximately 115,000, with an economy heavily dependent on US Compact funds, fishing licence fees, and subsistence agriculture. GDP per capita is low and the formal financial sector is minimal. - Banking. The Bank of the Federated States of Micronesia and Bank of Guam branches are the primary financial institutions. Banking relationships route through US correspondent banks, subjecting them to US AML/BSA requirements. - No fintech or crypto market. Internet penetration is limited and no domestic fintech ecosystem exists. - COFA migration. An estimated 40,000+ FSM citizens live in the US (Hawaii, Guam, mainland), where they interact with US financial institutions using FSM-issued identity documents.
Supported documents
Didit templates cover national IDs, passports, residence permits and regional documents — plus 14,000+ documents globally for cross-border flows.
Regulators
oversees banking licensing
exercises indirect oversight through correspondent banking relationships
Registrar of Vital Statistics — Department of Health and Social Affairs
restricted
Basic civil registration system. Decentralized across four states (Yap, Chuuk, Pohnpei, Kosrae). Paper-based records. Limited digital infrastructure. US Compact of Free Association provides some insti
Government & regulated databases
Compliance framework
AML framework
Supervised by FSM Banking Board
- Limited domestic AML framework. FSM does not have comprehensive stand-alone AML/CFT legislation comparable to FATF standards. - US regulatory overlay. Through banking relationships with US-supervised institutions and COFA provisions, US Bank Secrecy Act (BSA) requirements apply indirectly to transactions flowing through US correspondent banks. - No comprehensive data protection law.
Data protection
Supervised by National DPA
No data protection law exists. The COFA relationship means significant data flows between FSM and the US, governed by US data-handling standards rather than FSM domestic law.
Penalties for non-compliance
- The renewed COFA ($6.5 billion over 20 years) increases institutional capacity-building obligations
Use cases
Neobanks, EMIs, payment institutions, lenders, brokerages.
For FSM nationals (primarily in US-based interactions):
Exchanges, custodians, wallets, on/off-ramps.
Not applicable domestically. FSM nationals using crypto platforms abroad undergo standard KYC with their FSM passport.
Gig platforms, delivery, creator economy, e-commerce.
Not applicable domestically. FSM nationals using international platforms undergo standard document-based KYC.
Biometric liveness
FSM documents are not chip-enabled. Verification relies on optical document inspection and facial biometric matching. FSM passport templates may have limited availability among commercial IDV providers. ---
CERTIFICATIONS
Our platform meets the highest international standards for information security, data privacy, and biometric accuracy.
Full EU data protection compliance
Information security management
PAD (liveness + face match)
TRUSTED WORLDWIDE
Join thousands of companies that trust Didit for their verification needs
Didit’s NFC + active biometrics technology blocks the most advanced fraud scenarios, offering a level of security equivalent to or superior to in-person verification.
Spanish Financial Sandbox
CNMV, SEPBLAC & Spanish Treasury — Conclusions Report
Didit is an exceptionally valuable partner, delivering a stable and highly adaptable solution”.
Vuk Adžić
Head of the E-Business Department at Crnogorski Telekom
Didit offered us a robust technology with a simple implementation and adaptability to different markets”.
Fernando Pinto
CEO & CoFounder at TucanPay
Thanks to Didit we have been able to reduce manual processes and improve data extraction accuracy”.
Diana Garcia
Trust & Safety Executive at Shiply
Didit’s integration slashed verification times and costs, freeing resources for other projects”.
Guillem Medina
COO at GBTC Finance
Didit removed KYC costs, enabling faster scaling with high verification standards and less fraud.”
Paul Martin
VP Marketing & Growth at Bondex
Didit’s secure, user-friendly verification boosts customer trust and optimizes our process.”
Cristofer Montenegro
Executive assistant to the CEO at Adelantos
Didit ensures a precise, secure digital onboarding without slowing negotiations or client time.”
Ernesto Betancourth
Gerente de riesgos at CrediDemo
FAQ
Yes. Micronesia permits remote KYC onboarding under its national AML framework, including document verification, biometric liveness and video identification where required by regulation.
Didit verifies all major national IDs, passports and residence permits issued in Micronesia, plus 14,000+ document types globally for cross-border flows.
Didit charges $0.30 per verification with 500 free checks per month. No contracts, no minimums. Competitors typically charge $1.00–$2.50+ per verification.
Yes. Didit screens against 1,000+ global watchlists including PEP databases, sanctions lists (EU, UN, OFAC, OFSI), and adverse media — covering all AML obligations in Micronesia.
Most regulated sectors in Micronesia require or strongly recommend biometric liveness detection for remote onboarding. Didit provides ISO 30107-3 PAD Level 2 certified liveness.
Yes. Didit supports document verification, liveness, AML screening and ongoing monitoring aligned with Micronesia’s crypto regulatory framework, including EU Travel Rule compliance where applicable.
500 free verifications per month. No contracts, no minimums. $0.30 per verification after the free tier.
