Laos progresses with anti-money laundering efforts
Laos progresses with anti-money laundering efforts
Laos has progressed the implementation of its Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) obligations as planned, seeking to ensure financial and economic order, stability and security.
The 4th ordinary session of the National Coordination Committee on Money Laundering and Combating the Financing of Terrorism was held yesterday in Vientiane, chaired by Governor of the Bank of the Lao PDR, Dr Somphao Phaysith.
In the past Laos has actively implemented activities towards preventing money laundering and financing of terrorism in order to comply with the AML/CFT international standards as well as the 40 recommendations of the Financial Action Task Force (FATF), he noted.
Over the past four months, the committee has urgently implemented the resolutions of the 3rd ordinary session of the National Coordination Committee on AML/CFT, Dr Somphao said.
“We have made progress such as the adoption of a summary on implementing the AML/CFT and action plan in the last six months, said Dr Somphao, who is also Vice Chairman of the National Coordination Committee on AML/CFT.
He added that at the same time, the country has improved legislation such as the drafting of a Prime Ministerial Order on the freezing and confiscation of assets related to money laundering.
It has also formulated legislation in translating Prime Ministerial Order No.61 which consists of drafting an agreement on the adoption of lists of suspected terrorist organisations and individuals, according to Resolution 1267 of the UN Security Council and drafting the announcement on implementing the Prime Ministerial Order No.61.
The committee has also drafted agreements on charging reporting units; agreements on searching for customers and increasing the care it takes of financial institution customers.
The committee has improved the legislation of the Ministry of Public Security related to translating Prime Ministerial Order No.61 so that it can be endorsed and translated into approved legislation.
In particular, it is seeking to disseminate the Law on Money Laundering and Combating the Financing of Terrorism and other relevant legislation for ministries, financial institutions and other sectors in Vientiane and local areas.
It will also issue an announcement for reporting units in implementing and preparing memorandums of understanding with domestic and overseas sectors.
Hence, the committee is preparing to promote the Anti-Money Laundering Intelligence Unit under the Bank of the Lao PDR to become the Anti-Money Laundering Intelligence Office in order to enhance its role and rights in anti-m oney laundering, Dr Somphao noted.
According to the Anti-Money Laundering Intelligence Unit, Laos was firstly evaluated by FATF's APG in 2010 and the evaluation indicated Laos having deficiencies on AML/CFT.
This resulted in Laos being placed on the Grey list of the Financial Action Task Force (FATF).
The FATF plenary meeting in October 2015 placed Laos on the Dark Grey List due to the country's inability to meet priority regulations in a timely manner.
In addition to that, the FATF encourages Laos to address its AML/CFT deficiencies and continue the process of implementing its action plan.
