President Tommy E. Remengesau, Jr., has organized a special law enforcement operation to crack down on illegal  business practices and activities in the tourism industry. 

Remengesau through Presidential Directive No. 17-26, organized joint law enforcement special operation called an "Operation Clean Business, Sound-Tourism," to improve compliance with the laws, rules, and regulations governing the tourism industry. 

The law enforcement operation is effective immediately. Many businesses are operating illegally especially in the type of business reserved for locals. 

Previous government inspections revealed that there are several business operations that are operating secretively or illegally without proper permits or licenses. 

President Remengesau stressed that the Olbiil Era KeIulau recognized the increasing number of undesirable tourism related businesses schemes such as from businesses, operating apartments as hotels, and false marketing schemes, and has introduced a resolution calling on the President of the Republic to investigate and take the necessary actions to address the situation. 

The mission of the special operation is to organize all relevant law enforcement agencies to conduct random monitoring, inspections, investigations, and assessments of certain tourism-related businesses to ensure compliance with the law. 

Among the main areas of concentration for the special operation include rock island tourist sites, dive sites, live-aboard, state attraction sites, the airport terminal, tourist docking stations, and business establishments including restaurants, accommodations, gift shops, cubs, bars, and any other areas determined by the group. 

Members of the joint law enforcement operations are president's office, Bureau of Tourism, Attorney General's Office, FIB, PVA, Bureau of Public Health, Bureau of Immigration and Labor, Marine Law Enforcement and Fish and Wildlife, Bureau of Public Safety, Bureau of Commercial Development, Customs and Border Control, Bureau of Revenue and Taxation and Bureau of Aviation. 

In a related development, businesses in respective categories reserved for Palauans will be required to show proof of bank account under the business name and a Palauan citizen. 

"I remind all Palauans who are these tourist related partnerships with foreign nationals that they are now required to show a bank account with their name and the name of the business for business license renewal," said Minister of Finance Elbuchel Sadang. 

He said the proof of bank account was one of the ways that RPPL 9-64 (amendment to Foreign Investment Board) defined ownership to establish full business control.