BOL toughens stance against money laundering
BOL toughens stance against money laundering
The Lao government plans to strengthen measures against money laundering and financial access for the purposes of terrorism, as such activities could have a serious impact on the macroeconomy.
Members of the National Committee for Anti-Money Laundering and Combating the Financing of Terrorism met yesterday in Vientiane to review the implementation of past measures to prevent money laundering and outline plans for the future.
Speaking at the meeting, BOL Governor and committee vice-chairman Dr Somphao Phaysith said the prevention of money laundering was an important task because Laos now had a modern financial system which could provide loopholes for crimes and illegal financial processes.
“That’s why the banking sector has to be on the alert for any financial transactions that could be used to support terrorism,” he said.
Dr Somphao said any form of money laundering and financial support for terrorism could affect the steady growth of the economy.
“A few months ago, the government worked on a new law to combat money laundering so that bankers can more effectively deal with the problem, supported by other relevant regulations,” he said.
Laos still needs more technical and financial support for the implementation of anti-money laundering systems to comply with international standards.
The government has strengthened the laws on anti-money laundering and combating the financing of terrorism and has signed a memorandum of understanding on bilateral cooperation with foreign financial agencies to combat money laundering.
In other measures, the government has drawn up various regulations to comply with the guidelines set by the Financial Action Task Force (FATF) but there are more issues to be dealt with in the years to come.
At present, Laos is preparing for integration into the Asean Economic Community (AEC) at the end of this year, which requires improvements to legal processes, enhanced transparency, and a well-policed financial sector.
