Palau has signed a memorandum of agreement with three foreign fishing companies operating in the country.
The newspaper, Palau Horizon, reports that the agreement will implement regulations that can generate more income for Palau.
The regulations include a 50 percent increase in licensing fees, the expansion of the no fishing zone and a ban on shark finning.
The government says the agreement will raise some 1.3 million US dollars in direct taxes and other fees.
The agreement states that if caught violating this requirement, a vessel will have to pay a 50,000 US dollar bond before it will be released