Financial Crime World

Brunei’s Struggle Against Transnational Organized Crime

Brunei, a small but oil-rich nation in Southeast Asia, has made significant commitments to combat transnational organized crime. Despite its legal and political commitments, Brunei’s efforts have been marred by limited information on the implementation of anti-crime laws and a lack of practical bilateral or regional cooperation in actual transnational organized crime investigations or prosecutions.

Brunei has a strong legislative framework against transnational organized crime, including a new law requiring some companies to maintain a register of controllers and submit their details to the Ministry of Finance and Economy. However, there are few examples of the implementation of these laws, and criminal justice practitioners have applied them inconsistently.

Key Issues

  • Limited information on the implementation of anti-crime laws
  • Lack of practical bilateral or regional cooperation in actual transnational organized crime investigations or prosecutions

Confiscation Laws

Brunei’s approach to confiscation is unique, allowing authorities to seize assets from suspected perpetrators without needing to convict them of organized crime. This has raised concerns about the potential for abuse of power and lack of due process.

Key Issues

  • Potential for abuse of power
  • Lack of due process

Criminal Justice System

Brunei’s criminal justice system is divided between secular and Sharia courts, with the latter following a strict interpretation of Islamic law. The country’s legal system is based on English common law, but Sharia law is enforced in Sharia courts. Conditions in Brunei’s prisons are not well-documented.

Key Issues

  • Divided criminal justice system
  • Lack of transparency in prison conditions

Human Trafficking Concerns

Brunei has failed to prosecute or convict any human traffickers for the fourth consecutive year, citing misunderstandings about what constitutes trafficking and insufficient capacity to identify victims and investigate powerful stakeholders, including those connected to the royal family.

Key Issues

  • Lack of prosecution and conviction of human traffickers
  • Insufficient capacity to identify victims and investigate trafficking cases

Economic and Financial Environment

Brunei’s economy relies heavily on oil extraction, but the country has called for economic diversification. However, progress has been slow due to the centralized state structure that relies on the monarchy. The country’s exceptional wealth and tax-free status attract foreign investors, but poor fiscal health and limited financial freedoms increase vulnerability factors such as human trafficking.

Key Issues

  • Centralized state structure
  • Limited economic diversification
  • Vulnerability to human trafficking

Civil Society and Social Protection

Brunei has no dedicated facility for addressing human trafficking, but it does have rehabilitation and protection centers to assist victims. However, victims are likely to be deported and/or convicted as irregular workers rather than being identified as victims of human trafficking.

Key Issues

  • Lack of dedicated facility for addressing human trafficking
  • Limited protections for foreign workers

Global Context

Brunei’s struggles against transnational organized crime are set against a backdrop of restricted press freedom and the introduction of Sharia law, which has led to further restrictions on civic space. The country’s absolute monarchy with no elected representatives at the national level means that there is limited room for dissenting voices or independent organizations.

Key Issues

  • Restricted press freedom
  • Introduction of Sharia law
  • Limited civic space

Acknowledgments

This article was funded in part by a grant from the United States Department of State. The opinions, findings and conclusions stated herein are those of the authors and do not necessarily reflect those of the United States Department of State.