Bhutan Cracks Down on Financial Crime: Establishes Financial Intelligence Unit and Joins APG

The Kingdom of Bhutan has taken a bold step to strengthen its financial system against illicit activities by establishing a Financial Intelligence Unit (FIU) within the Royal Monetary Authority (RMA). Here are some key points about Bhutan’s recent moves to combat financial crime.

Setting Up a Financial Intelligence Unit (FIU)

The new FIU will serve as a reporting and investigating center for suspicious transactions that could be linked to money laundering or terrorist financing. This move comes as part of Bhutan’s dedication to eradicating financial crime.

Criminalizing Money Laundering

Bhutan’s commitment to financial integrity was formalized in 2004 when the Bhutan Penal Code Act was enacted. This law makes it a punishable offense to launder proceeds from any criminal act.

Becoming a Member of APG

Bhutan’s dedication to combating money laundering and terrorist financing was reinforced in 2011 when it became a member of the Asia/Pacific Group on Money Laundering (APG). The country is now subject to rigorous evaluation by the APG to ensure its financial system conforms to international AML/CFT standards.

Key Milestones:

• Bhutan’s first Mutual Evaluation Report was adopted by the APG in September 2016.
• Comprehensive report on Bhutan’s AML/CFT regime available at APG website.

Cooperating with International Organizations

Bhutan’s efforts to strengthen its legal framework and counter financial crime are a reflection of its commitment to working with international organizations. Here are some useful links to learn more about Bhutan and the Royal Monetary Authority:

1. Bhutan Government: www.bhutan.gov.bt
2. Royal Monetary Authority of Bhutan: www.rma.org.bt