Financial Crime World

Bhutan Sees Increase in Financial Crime Trends in 2023, Report Says

The Royal Government of Bhutan has released a follow-up report on financial crime trends in the country for 2023. The report highlights several areas of concern and notes that Bhutan is taking steps to strengthen its anti-money laundering and combating the financing of terrorism (AML/CFT) framework.

  • Risk Assessment: The report emphasizes the need to assess risk and apply a risk-based approach in AML/CFT efforts. This involves identifying high-risk areas and implementing targeted measures to prevent financial crime.
  • National Cooperation and Coordination: National cooperation and coordination were seen as critical in combating financial crime. Bhutan is working to improve its cooperation with international partners and regional organizations to share intelligence and best practices.

Targeted Measures

  • Money Laundering Offenses: The report highlights the importance of targeting money laundering offenses, including confiscation and provisional measures. This involves freezing assets and imposing penalties on individuals and entities involved in financial crimes.
  • Targeted Financial Sanctions: Targeted financial sanctions related to terrorism and terrorist financing were another area of focus in the report. Bhutan is working to implement effective sanctions regimes to prevent the financing of terrorist activities.

Key Recommendations

  • Non-Profit Organizations (NPOs): The report notes that NPOs play a critical role in AML/CFT efforts. NPOs are required to implement measures to prevent financial crime and ensure transparency in their operations.
  • Financial Institution Secrecy Laws: Financial institution secrecy laws were identified as an area for improvement, with the report noting that Bhutan needs to strengthen its laws to prevent the misuse of bank secrecy.
  • Customer Due Diligence: Customer due diligence was also seen as a key area for focus, with the report recommending that financial institutions implement effective customer identification procedures to prevent money laundering and terrorist financing.

International Cooperation

  • Regional Organizations and Partners: The report notes that Bhutan is working to strengthen its relationships with regional organizations and international partners to combat financial crime.
  • Improved Regulation and Supervision: The report recommends several measures to improve AML/CFT efforts in Bhutan, including increasing transparency and beneficial ownership of legal persons and arrangements. It also calls for improved regulation and supervision of financial institutions and non-financial businesses and professions (DNFBPs).

Conclusion

The report concludes by recommending several steps to improve AML/CFT efforts in Bhutan, including increasing transparency and beneficial ownership of legal persons and arrangements. The Royal Government is committed to strengthening its anti-money laundering framework and working with international partners to combat financial crime.