Financial Crime World

Strengthening Asset Recovery and International Cooperation: Progress in the Lao People’s Democratic Republic

The Lao People’s Democratic Republic (Lao PDR) has made significant strides in combating money laundering, terrorist financing, and asset recovery. In this article, we will explore the key measures taken by the country to prevent and detect financial crimes, ensure financial disclosure, facilitate direct recovery of property, return and disposal of assets, and promote international cooperation.

Prevention and Detection

To combat financial crimes, the Lao PDR has implemented various measures, including:

  • Know Your Customer (KYC) procedures: The Law on Anti-Money Laundering and Counter-Financing of Terrorism requires reporting entities to implement KYC procedures.
  • Financial Intelligence Unit establishment: A Financial Intelligence Unit is established for the prevention and detection of transfers of proceeds of crime.

Financial Disclosure

The Lao PDR has also introduced measures to ensure financial transparency, including:

  • Asset and income declarations: All public officials are required to make asset and income declarations, including foreign bank accounts.
  • Reporting threshold: A reporting threshold of 20 million Kip (approximately US$2,328) is in place.

Measures for Direct Recovery of Property

The country has established mechanisms for direct recovery of property from individuals, organizations, or enterprises in foreign countries, including:

  • International cooperation treaties: Individuals, organizations, or enterprises can file claims against persons in the Lao PDR through international cooperation treaties or the Ministry of Foreign Affairs.
  • Compensation decisions: Courts are required to make decisions on compensation in criminal cases at the same time as they consider the criminal case.

Return and Disposal of Assets

The Criminal Procedure Law establishes the rights of victims and civil plaintiffs to receive compensation for losses, including:

  • Rights of victims and civil plaintiffs: The National Coordination Committee for Anti-Money Laundering and Countering the Financing of Terrorism Guideline No. 08/NCC recognizes the claims of legitimate owners over assets that are seized, frozen, or confiscated.

International Cooperation

The Lao PDR has also strengthened international cooperation to combat financial crimes, including:

  • Law on International Cooperation in Criminal Matters: The Law on International Cooperation in Criminal Matters No. 88/NA (2020) provides detailed procedures for returning assets or properties to requesting states.
  • Asset management and preservation: Management and preservation of frozen or confiscated assets or properties shall be implemented based on the Criminal Procedure Law of the Lao PDR.

Overall, the Lao PDR has made significant progress in strengthening asset recovery mechanisms and international cooperation, demonstrating its commitment to combating financial crimes.