Financial Crime World

Brunei’s Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) Measures

Overview

Brunei has a low crime rate and limited Money Laundering/ Terrorist Financing (ML/TF) risks. While the country’s AML/CFT framework is generally sound, some gaps remain.

Money Laundering (ML)

ML Investigations

  • Brunei’s ML investigations have focused on self-laundering activities with limited examples of stand-alone ML.
  • Most ML investigations are for small, straightforward cases with limited complex ML methods.
  • There is a high level of operational cooperation between the Financial Intelligence Unit (FIU), Law Enforcement Agencies (LEAs), and the Attorney General’s Chamber.

Confiscation

Overview

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

Challenges

  • Practices for asset management and record keeping vary between agencies.

Terrorist Financing (TF)

Prioritization

Brunei authorities prioritize combating terrorism and TF, allocating significant resources to identify and mitigate TF threats.

Investigations and Prosecutions

  • There are no TF investigations, prosecutions, or convictions in Brunei to date.

Preventive Measures

Regulatory Framework

Some core elements of preventive measures are in place for Financial Institutions (FIs) and Designated Non-Financial Business and Professions (DNFBPs).

Gaps and Recommendations

  • There are gaps in the regulatory framework for preventive measures.
  • No comprehensive framework is in place for Virtual Asset Service Providers (VASPs).
  • Implement a risk-based approach for preventive measures across all sectors.

Recommendations

Based on the findings, it can be inferred that Brunei should:

  1. Develop a more comprehensive AML/CFT framework to address remaining gaps.
  2. Improve confiscation practices, including asset management and record keeping.
  3. Enhance understanding of ML/TF risks and AML/CFT obligations among FIs and DNFBPs.
  4. Implement a risk-based approach for preventive measures across all sectors.
  5. Develop a regulatory framework for VASPs to include in the preventive measures framework.

These recommendations are based on the provided text and may not be exhaustive or comprehensive.