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Laos strengthens money laundering controls
Laos is making progress on tackling money laundering and avoiding being placed on an international list of countries where the illegal activity is prevalent.
Participants in yesterday's Asia/Pacific Group on Money Laundering (APGML) meeting have provided feedback and advice to the Lao government regarding efforts to eliminate money laundering.
Lao officials and experts from the APGML are working closely to introduce standard measures to combat money laundering in Laos.
The meeting in Vientiane was organised by the Bank of the Lao PDR and the APGML. Participants included officials from involved ministries and offices.
The meeting was chaired by the central bank's Anti Money Laundering Intelligence Unit Director General, Mr Leuane Vongphranakhorn, and the APGML Principal Executive Officer, Mr Lindsay Chan.
The workshop reviewed the results of an APGML evaluation on activities to tackle money laundering and terrorism financing in Laos, as well as a strategic implementation plan.
Participants also provided feedback to ensure Lao officials complete the required progress reports for submission to the APGML on time.
Based on the evaluation, Laos was encouraged to implement measures outlined by the APGML, including improving Article 64 of the criminal law, which relates to money laundering, to meet international standards.
Legislation relating to money laundering needs to be created and the working party of the money laundering office needs to be improved, the meeting heard.
According to the APGML, money laundering is an international crime and a severe issue. Countries lacking strict financial systems and controls are often targeted by criminals wishing to hide the proceeds of crime.
Countries at risk of being targets of money launderers are placed on an international observation list, which then threatens investor and business confidence in that country, especially in the banking sector. At present, Laos is not on the observation list for money laundering activities.
The APGML is an autonomous and collaborative international organisation founded in 1997 in Bangkok, Thailand, consisting of 41 members and a number of international and regional observers.
Some of the key international organisations who participate with, and support, the efforts of the APGML in the region include the Financial Action Task Force, International Monetary Fund, World Bank, OECD, United Nations Office on Drugs and Crime, Asian Development Bank and the Egmont Group of Financial Intelligence Units.
According to the APGML, although estimating the amount of worldwide money laundering is problematic, the International Monetary Fund has estimated that between 2 and 5 percent of global GDP per year is generated annually as the proceeds of crime (amounting to trillions of US dollars), the largest sources of which are illicit drug manufacturing and trafficking, arms and people smuggling, corruption, fraud, extortion, kidnapping and theft.
Such funds, whether entered into a financial system or concealed, disguised or otherwise transferred, are by definition laundered funds.
vientiane times
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