BOL, judiciary, police to combine anti-money laundering efforts
BOL, judiciary, police to combine anti-money laundering efforts
The Bank of the Lao PDR (BOL), the Ministry of Public Security and the People's Supreme Court have signed a memorandum of understanding (MoU) to exchange information on preventing money laundering and financing of terrorism.
The MoU was signed yesterday in Vientiane between Head of the Anti-Money Laundering Intelligence Office Ms Phengsy Phengmeuang, Director General of the Family Management and Grass Roots Development Department, Police Brigadier General Khamsay Chanthavong and the People's Supreme Court Office Head Mr Bounkhuang Thavisack.
The event was witnessed by Deputy Minister of Pubic Security, Police Major General Kongthong Phongvichith, Deputy Governor of the Bank of the Lao PDR, Ms Vatthana Dalaloy and Vice President of the People's Supreme Court, Mr Khampha Sengdara.
Speaking at the signing ceremony, Ms Phengsy Phengmeuang said Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) has become a global issue and every country must take action against this phenomenon based on international standards in association with their own law and regulations.
If a country is unable to strictly follow the principles and condition of AML/CFT international standards, it will be placed on the list of the Asia-Pacific Group on Money Laundering which will impact the country's socio-economic development, she warned.
Foreign investors and customers won't believe in Laos' financial and banking sectors, which is another reason is to implement and translate the relevant domestic laws, Ms Phengsy added.
Money laundering and financing of terrorism is an international issue and very complicated so it requires clear information on the Lao people and foreigners registered during the census in Laos. Alongside that, clear information is required in regards to judgements by the courts in order to prevent supra-national crimes from occurring, in accordance with the relevant international treaties Laos is a party to.
Ms Phengsy said combatting money laundering will be very difficult without tight cooperation between sectors across the country.
“Today's MoU between the BOL, the Family Management and Grass Roots Development Department and the People's Supreme Court will enable us to tighten cooperation so that we can exchange more information in the area of AML/CFT,” she said.
As a member of the Asia-Pacific Group on Money Laundering, Laos is obliged to implement the Financial Action Task Force's recommendations to meet international standards on anti-money laundering and countering the financing of terrorism. In the past few years, the BOL's Anti-Money Laundering Intelligence Unit has signed MoUs on data exchange with several government bodies including the State Inspection Authority and the Foreigner Control Department under the Ministry of Public Security.
In addition, the BOL cooperates with various Asean countries in technical areas, including Myanmar, Cambodia and several other developing countries.
