Authorities in Palau have detained a Taiwanese boat and crew for allegedly taking shark fins.

President Tommy Remengesau says the next step for his administration is to ask the court to administer the maximum penalties, which can reach $US500,000 and include the forfeit of the vessel.

It is the third case relating to illegal shark finning in Palau's waters since January.

The attorney general's department in Palau says in the recent case customs officers found nearly 300 kilograms of shark fins and half a tonne of bodies and filleted shark meat.

President Remengesau says the substantial profits in the shark fin trade outweigh fears of prosecution for those involved in the illegal business.

He says Palau will continue to fully enforce stringent anti-shark fishing laws.