Bhutan Cracks Down on Money Laundering: Strengthening Anti-Money Laundering Systems and Joining Global Efforts

In a significant move to enhance its anti-money laundering (AML) measures, the Kingdom of Bhutan has taken major strides to fortify its financial system against illicit transactions. This article explores Bhutan’s efforts in strengthening its AML systems and joining global initiatives.

Establishing a Financial Intelligence Unit (FIU)

To combat money laundering effectively, Bhutan established a Financial Intelligence Unit (FIU) within the Royal Monetary Authority. The FIU is responsible for receiving, processing, and disseminating information related to suspicious transactions. This vital unit plays a crucial role in detecting and preventing potential money laundering activities.

Strengthening Anti-Money Laundering Laws

Bhutan has criminalized the laundering of proceeds from crime, as outlined in the Bhutan Penal Code Act enacted in 2004. This legislation bolsters the country’s efforts in combating money laundering and demonstrates its commitment to adhering to international AML standards.

Integration into Global Anti-Money Laundering Regime

In July 2011, Bhutan became a member of the Asia/Pacific Group on Money Laundering (APG), a regional body that sets anti-money laundering standards. The APG’s membership enables Bhutan to benefit from global best practices and improve its AML systems.

First Mutual Evaluation Report

The first Mutual Evaluation Report of Bhutan was adopted by the APG in September 2016. This comprehensive report examines Bhutan’s anti-money laundering and counter-terrorist financing regime, highlighting strengths as well as areas for improvement. The report is publicly available online on the APG and Bhutan government’s websites.

Resources

• Bhutan Government Portal
• Royal Monetary Authority of Bhutan

By joining global efforts to combat money laundering, Bhutan demonstrates its commitment to maintaining a robust financial system that is transparent and secure. As the country continues to strengthen its AML measures, it sets an example for other nations to follow in their own efforts against illicit financial activities.