Bhutan Bolsters Anti-Money Laundering Defense

In the secluded Himalayan Kingdom of Bhutan, efforts to strengthen its anti-money laundering (AML) defenses have been underway. The small Asian nation has been making significant strides in recent years, establishing key institutions to combat suspected financial crimes.

Creating a Financial Intelligence Unit (FIU)

One of the most noteworthy accomplishments includes the creation of a Financial Intelligence Unit (FIU) under the Royal Monetary Authority. The FIU is primarily responsible for:

Collecting and analyzing data about potential suspicious transactions.
Identifying and reporting any unusual transactions or patterns.
Liaising with other financial intelligence units and law enforcement agencies.

This critical development adds another layer of protection to prevent the concealment of illicit funds.

Legal Actions against Money Laundering Activities

The Bhutanese government has also taken legal action against money laundering activities. The Bhutan Penal Code Act was enacted back in 2004, making the laundering of criminal proceeds a punishable offense.

Joining Forces with APG

Bhutan’s dedication to AML compliance culminated in its membership to the Asia/Pacific Group on Money Laundering (APG) in July 2011. The APG, an international organization dedicated to preventing money laundering and terrorist financing, has recognized Bhutan’s progress and published its first Mutual Evaluation Report for the country.

A Closer Look at the Evaluation Report

The report, adopted by the APG in September 2016, scrutinizes Bhutan’s:

Legal framework
Administrative measures
Operational effectiveness

in tackling money laundering and terrorist financing. This comprehensive assessment offers invaluable insights into Bhutan’s efforts to strengthen its AML structure and align it with global standards.

For more information, please visit the official Bhutan government portal and the Royal Monetary Authority of Bhutan websites.