PALIKIR, Pohnpei — On July 17, 2025 , the Government of the Federated States of Micronesia (FSM) officially launched its new Revenue Management System (RMS), a major national milestone under the World Bank–supported Public Financial Management (PFM) Project. Designed to modernize and strengthen the country’s capacity to collect and manage public revenue, the RMS is expected to improve service delivery, promote transparency, and reinforce citizen trust in government institutions.
The launch event, held at the FSM President’s Office in Palikir, brought together senior national leadership, development partners, and technology experts. The event opened with remarks by Hon. Rose N. Nakanaga, Secretary of Finance and Administration, followed by a keynote speech by Hon. Aren B. Palik, Vice President of the FSM. The representative from the Armenian firm IU Networks LLC, Mr. Artak Saghatelyan, the developers of the system, also spoke.
In his speech, Vice President Palik described the RMS as “a transformational tool that reflects our national commitment to good governance, improved compliance, and digital inclusion.” He noted that the new system will make a tangible difference for citizens nationwide. “A tour operator in Yap, a shopkeeper in Kosrae, a businesswoman in Pohnpei, or a hotel operator in Chuuk, will now be able to register, file, and pay taxes online, anywhere, anytime”. “That is a huge step forward,” he added, “This is about convenience, inclusion, and fairness”.
Secretary Nakanaga emphasized that the RMS represents more than a digital upgrade. “This system is a leap forward in how we manage public funds—ensuring that revenue is collected efficiently, recorded transparently, and used responsibly,” she stated. “Thanks to the RMS, taxpayers will be able to access their own information, confirm transactions digitally, and avoid the delays and paperwork that previously complicated compliance.”
The RMS automates key functions across the Customs and Tax Administration (CTA), including registration, return filing, payments, audits, refunds, and risk management. For tax authorities, it means less manual work, stronger compliance mechanisms, and better tools for policy design. “The system enables real-time monitoring and analytics,” said Vice President Palik. “We’ll be able to forecast revenues more accurately and use data to make smarter decisions.”
Following the speeches, the CTA conducted a live demonstration of the system, giving attendees a first look at its interface and core functionalities. The CTA team highlighted how the RMS supports risk-based audits, improves cash flow management, and introduces new levels of transparency and accountability.
IUNetworks’ Project Manager, Mr. Artak Saghatelyan, praised the collaboration between the government and the technical team. “This project reflects a true partnership,” he said. “We worked closely with the FSM tax and customs officials to design a system that is not only technically robust but aligned with local realities and long-term goals.” He also acknowledged the dedication of the FSM’s project team, including key staff from the Department of Finance’s Customs and Tax Division, for their tireless contributions over the past year.
The RMS is part of a broader push by the FSM Government to modernize its public institutions and strengthen service delivery across sectors. The system is built to evolve over time, with the flexibility to adapt to future legal, operational, and policy changes.
Moreover, it provides end-to-end functionality for tax administration — from registration and payments to audits and refunds — all through a unified digital interface. It also enables structured case management, automated compliance checks, and tailored taxpayer communication. The CTA conducted a live demonstration of the platform during the launch, showing how core services are now accessible remotely.
Today’s event builds on months of preparation, and years of research and development. Prior to go-live, the Department of Finance and Administration led extensive online training sessions, and with IU Networks, conducted follow-up in-person workshops across all four FSM states. This hands-on training supports CTA staff in adopting the system and ensures smooth onboarding for taxpayers.
“This is not the end,” said Secretary Nakanaga in closing. “It is the beginning of a new chapter – one where our institutions are more responsive, our processes more efficient, and our citizens better served.”
About the RMS and the PFM Project
The Revenue Management System was developed under the Public Financial Management Project, a national initiative supported by the World Bank. The project aims to improve budget execution, public procurement, and domestic revenue mobilization. With the launch of the RMS, FSM takes a significant step toward building a more accountable, transparent, and citizen-focused public finance system.
For further information, please contact:
FSM Department of Finance & Administration
Customs & Tax Administration
Mr. Andrew Haigh, Tax Administration Advisor
Email: andrew.haigh@gov.fm
Web: https://dofa.gov.fm/customs-and-tax-administration/
FSM Department of Finance & Administration
Mr. Alvaro Hoyos, Communication Specialist, CIU.
Email: alvaro.hoyos@dofa@gov.fm
Web: https://dofa.gov.fm
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