Financial Crime World

Title: Bhutan’s Crackdown on Financial Crimes: Strict Regulations and Compliance

Bhutan’s Commitment to Fighting Financial Crimes

Bhutan, renowned for its happiness index and tranquillity, has taken significant strides against financial crimes. The country’s regulatory bodies have recently completed a follow-up report on financial regulation compliance, following an assessment by the International Monetary Fund (IMF).

Risk Assessment and Regulatory Approaches (R.1-R.32)

  • Risk Assessment: Bhutan has made substantial progress in establishing a legal framework against money laundering (AML) and counter terrorist financing (CFT), showcasing impressive efforts. However, non-profit organizations and cash couriers warrant improvement.
  • National Cooperation and Coordination (R.2): Bhutan has implemented measures to foster information sharing among its financial sector regulatory bodies.
  • Legislation on Money Laundering Offenses, Confiscation, and Provisional Measures (R.3-R.5): Bhutan has enacted necessary legislations against money laundering offenses and terrorist financing offenses.

Sanctions and Customer Due Diligence (R.6-R.12)

  • Targeted Financial Sanctions: Bhutan has shown significant progress in implementing measures related to terrorism and terrorist financing, proliferation, and Designated Non-Financial Business and Professions (DNFBPs).
  • Customer Due Diligence, Record Keeping, and Politically Exposed Person Checks (R.10-R.12): Bhutan continues to focus on ensuring customer due diligence, maintaining sufficient records, and applying politically exposed person checks.

Regulatory and Supervisory Aspects (R.26-R.29)

  • Regulatory and Supervisory Aspects: Bhutan has put effort into the establishment and strengthening of the Financial Intelligence Unit.

  • Law Enforcement and Investigative Authorities (R.30-R.31)

    • Bhutan’s law enforcement and investigative authorities have been granted increased powers to combat financial crimes.
    • Strict Compliance with International Standards
      • Bhutan is committing to adhere to these regulations beyond its IMF obligations, keeping up with the evolving needs of a globalized world.
      • Continuous Improvements and Adapting to Emerging Threats
        • The country intends to focus on continuous improvements and staying updated with the latest threats to financial systems.