Financial Crime World

Bhutan Fails to Meet International Anti-Money Laundering and Terror Financing Standards

Bhutan’s Assessment by the Financial Action Task Force (FATF)

A recent assessment by the FATF has found that Bhutan is not doing enough to prevent financial crimes, including money laundering and terror financing. The report highlights several areas where the country falls short of international standards.

Overview of the FATF

The FATF is an intergovernmental organization that sets global anti-money laundering and counter-terrorist financing standards. Its recommendations are aimed at preventing financial crimes and promoting transparency in financial transactions.

Areas Where Bhutan Needs to Improve

Bhutan’s follow-up report, released last year, reveals that the country has not fully implemented several key recommendations. These include:

Assessing Risk and Applying a Risk-Based Approach

  • Not fully implemented: Bhutan was found to be largely compliant with this recommendation, but still needs to improve its systems for identifying and mitigating high-risk transactions.

National Cooperation and Coordination

  • Enhanced collaboration needed: The country was also found to be largely compliant with this recommendation, but still needs to enhance its collaboration between different government agencies to combat financial crimes.

Money Laundering Offense

  • Partial compliance: Bhutan was found to be partially compliant with this recommendation, as it has not fully implemented a law that criminalizes money laundering.

Confiscation and Provisional Measures

  • Ineffective procedures: The country was also found to be partially compliant with this recommendation, as it has not established effective procedures for freezing and confiscating assets linked to financial crimes.

Recommendations for Improvement

By implementing these recommendations, Bhutan can strengthen its ability to prevent financial crimes and promote transparency in financial transactions.

  1. Implement a comprehensive anti-money laundering law
  2. Enhance cooperation between government agencies
  3. Improve risk assessment and mitigation systems
  4. Establish effective procedures for freezing and confiscating assets linked to financial crimes

Source

FATF Follow-Up Report on Bhutan (2018)

Note

The FATF report provides a detailed assessment of Bhutan’s compliance with international anti-money laundering and counter-terrorist financing standards. The report highlights areas where the country needs to improve, but also acknowledges its progress in implementing key recommendations.