OL working with business leaders to combat money laundering
OL working with business leaders to combat money laundering
Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) has become a global issue and every country has a responsibility to take action against these crimes based on their own regulations in association with international standards.
Laos is one of the countries taking a tough line to prevent and resolve the issue with the aim of boosting confidence among Lao and foreign businesses and investors.
As part of the government's efforts to bring the country's financial standards in line with international systems, the Bank of the Lao PDR (BOL)'s Anti-Money Laundering Intelligence Unit yesterday signed a Memorandum of Understanding (MoU) with the Registration and Management of Enterprises Department of the Ministry of Industry and Commerce.
The MoU was signed by BOL's Acting Head of the Anti-Money Laundering Intelligence Unit, Ms Phengsy Phengmeuang, and Director General of the Registration and Management of Enterprises Department, Dr Somphouang Phienphinith.
“If we don't strictly follow the guidelines of international bodies, Laos will be in trouble in terms of socio-economic development,” said Ms Phengsy.
The banking and financial sectors in Laos would be more widely trusted by customers if their financial systems were more transparent, she noted.
The MoU is also an important aspect of compliance with the Law on Enterprise, Ms Phengsy said.
“AML/CFT is an international issue, which is complex. We have to have detailed information about business operators who register in Laos in order to prevent transnational crime, under the convention to which Laos is a party,” she added.
The issue would be not successfully addressed if cooperation from the relevant sectors was not forthcoming.
Money laundering is a serious issue but wrongdoers are not severely punished, Dr Somphouang said.
On behalf of the Bank of the Lao PDR, the Anti-Money Laundering Intelligence Unit last month signed an MoU with the Foreigner Control Department under the Ministry of Public Security.
As a member of the Asia-Pacific Group on Money Laundering, Laos is obliged to implement the Financial Action Task Force's 40 recommendations in order to meet international standards on anti-money laundering and countering the financing of terrorism.
In the past few years, BOL's Anti-Money Laundering Intelligence Unit has signed MoUs on data exchange with several government bodies including the State Inspection Authority. In addition, the BOL cooperates with various Asean countries in technical areas, including Myanmar, Cambodia and several other developing countries.
Last year, the BOL signed an MoU with the Korea Financial Intelligence Unit to exchange information on preventing money laundering and the financing of terrorism, which was a significant form of international cooperation to actively address the central bank's AML/CFT deficiencies.
