Maldives Cracks Down on Money Laundering with Stringent AML Procedures for Small Businesses

The Maldivian government has taken a significant step to curb financial crime by strengthening its anti-money laundering (AML) and combating the financing of terrorism (CFT) framework. As part of this effort, small businesses are now required to comply with stringent regulations.

Background

In July 2008, the Maldives joined the Asia-Pacific Group on Money Laundering (APG), a move that paved the way for the implementation of a comprehensive AML/CFT system.

Enhanced AML/CFT Regime

The Maldives Monetary Authority has established a dedicated section to handle Financial Intelligence Unit (FIU) functions, including:

• Receiving suspicious transaction reports
• Analyzing and disseminating information
• Enhancing the country’s efforts to prevent the misuse of financial systems by criminal networks

International Evaluation

In 2010, the International Monetary Fund (IMF) evaluated the Maldives’ AML/CFT framework as part of the APG’s second round of mutual evaluations. The report was adopted at the 2011 APG Annual Meeting in Kochi, India and published jointly by the IMF and APG in January 2012.

Availability of Report

The document is now available for public viewing on the APG website.

Key Takeaways

• The Maldivian government has strengthened its AML/CFT framework to curb financial crime
• Small businesses are now required to comply with stringent regulations
• The country’s membership in the Asia-Pacific Group on Money Laundering (APG) has facilitated the implementation of a comprehensive AML/CFT system