Brunei’s Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) Measures: A Report Assessment

Introduction

This report provides a summary of the current state of Brunei’s anti-money laundering (AML) and counter-terrorist financing (CTF) measures. While progress has been made, several gaps and weaknesses remain that need to be addressed.

Assessment of Brunei’s AML/CTF Measures

Investigation and Prosecution

• The Financial Intelligence Unit (FIU) has strengthened its capacity to conduct investigations and prosecutions.
• However, the majority of cases are small and straightforward, indicating a lack of complexity in tackling more sophisticated money laundering schemes.

Confiscation Policy

• Brunei includes confiscation as an overarching policy objective in its National Strategy.
• Some progress has been made in seizing property with a view to confiscation since 2017; however, there is limited success in pursuing and confiscating criminal proceeds that have moved overseas.

Concerns and Gaps

• Poor detection of cash smuggling at borders due to Brunei’s largely cash-based economy.
• The potential for cross-border movement of monies without effective monitoring and control.
• Lack of a comprehensive framework for including virtual asset service providers (VASPs) in the regulatory framework.

Terrorism and TF Risks

• Relevant LEAs and intelligence agencies closely monitor terrorism and TF risks through cooperative inter-agency processes.
• However, there is limited success in pursuing and confiscating criminal proceeds that have moved overseas.
• Practices for asset management and record keeping vary between agencies.