Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) Measures in Brunei Darussalam

Executive Summary

Brunei has made significant progress in implementing AML/CTF measures, but there are still some gaps and areas for improvement. The country’s high level of operational cooperation between relevant authorities is a positive aspect.

Key Points:

• Progress has been made in implementing AML/CTF measures
• Gaps remain in the regulatory framework, particularly with regard to preventive measures
• Understanding of ML/TF risks and AML/CFT obligations varies across FIs and DNFBPs

Money Laundering (ML)

Brunei’s ML investigations and prosecutions have focused primarily on self-laundering activities. There were no cases of ML from foreign predicate offenses or ML through legal persons.

Key Points:

• Most ML investigations and prosecutions are for small, straightforward cases
• Limited complex ML methods have been identified

Confiscation

Brunei includes confiscation as an overarching policy objective in its National Strategy. LEAs have shown progress in seizing property with a view to confiscation since the establishment of the Strategy in 2017.

Key Points:

• Confiscation is included as a policy objective in the National Strategy
• Progress has been made in seizing property for confiscation

Terrorist and Proliferation Financing (TF)

Brunei authorities place a high priority on combating terrorism and TF. There are no TF investigations, prosecutions, or convictions in Brunei to date.

Key Points:

• A high priority is placed on combating terrorism and TF
• No TF investigations, prosecutions, or convictions have been reported

Preventive Measures

Some of the core elements of preventive measures are in place for FI/DNFBP. However, there are remaining gaps with the regulatory framework for preventive measures.

Key Points:

• Some preventive measures are in place for FI/DNFBP
• Gaps remain in the regulatory framework

Conclusion

Brunei has made progress in implementing AML/CTF measures, but there are still some areas for improvement. The country needs to address gaps in its regulatory framework, particularly with regard to preventive measures and the inclusion of virtual asset service providers (VASPs) in the regulatory framework. Additionally, Brunei should improve its understanding of ML/TF risks and AML/CFT obligations across all sectors.