BOL tackling lax financial systems
BOL tackling lax financial systems
The Bank of the Lao PDR (BOL) will try to have Laos removed from this year's Dark Grey list of the Financial Action Task Force (FATF), citing Lao initiatives on sustainable economic expansion and financing systems designed to integrate with regional and international standards.
The National Committee for Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) held its second meeting yesterday. The meeting was chaired by the Governor of the Bank of the Lao PDR, Dr Somphao Phaysith.
During the meeting, AML/CFT reviewed achievements in implementing the Financial Action Task Force (FATF)'s 40 recommendations to meet international standards on anti-money laundering and countering financing for terrorism. They also formulated action plans for operations this year.
The Anti-Money Laundering Intelligence Unit under the Bank of the Lao PDR - in cooperation with relevant sectors - took major responsibility for implementing obligations and improving deficiencies, in line with FATF allocations.
The above activities are part of the progress in issuing regulations, especially regarding temporary measures used to seize the property of money launderers.
Regulations have also been approved and implemented, such as the Law on Anti-Money Laundering and Countering the Financing of Terrorism and other relevant regulations governing ministries, financial institutes, and other sectors in Vientiane.
The BOL also signed a memorandum of understanding with the relevant domestic sectors and will continue to push for other pending draft regulations for Laos.
The BOL cooperates with many international bodies to enhance the capacity of its technical personnel working in crime prevention and other areas.
The banking and financial sectors in Laos need better collaboration with the BOL. Areas needing improvement include money transfers and other financial activities. Such improvements will decrease the risk of any potential money laundering activities.
Laos has not yet faced serious issues in terms of money laundering and financing for terrorism. But Laos still needs to follow government and international banking guidelines strictly, to prevent all forms of money laundering.
Laos is a member of the Asia-Pacific Group on Money Laundering (APG). So Laos has obligations in implementing the FATF's 40 recommendations to meet international standards on anti-money laundering and countering financing for terrorism.
Laos was first evaluated in 2010 by the FATF's APG, which indicated the country had deficiencies in AML/CFT. This resulted in Laos being placed on the Grey list of FATF.
In late 2015, the FATF plenary meeting placed Laos on the Dark Grey List, due to the country's inability to meet regulation priorities in a timely manner.
As a result, the BOL is now addressing its AML/CFT deficiencies. BOL is also striving to improve the dissemination of its action plan, as well as to improve various principles and regulations, in a bid to graduate from the Dark Grey List.
