There are currently no political parties in Palau and no legal provisions on funding and expenditure in relation to political parties
Foreign donations to candidates are banned
“There are no political parties, though no laws prevent their formation.”
Source: Freedom House. Freedom in The World Palau Country Report 2015, https://freedomhouse.org/report/freedom-world/2015/palau accessed 3 January 2018
(a) It shall be unlawful for a foreign national directly or through any other person to make any contribution in connection with an election to any national or state elective office, or in connection with any convention or caucus to select candidates for any national or state elective office or in support of or in opposition to any national or state ballot measure; or for any person, including any candidate, to solicit, accept, or receive any such contribution from a foreign national.
Source: Article 607, Palau National Code, Title 33 Public Employment Chapter 6 Code of Ethics as revised April 2014