Political History
Palau adopted a constitution on January 1, 1981.
While calm in recent years, Palau witnessed several instances of political violence in the 1980s. The republic's first president, Haruo I. Remeliik, was assassinated in 1985; the Minister of State 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.
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