Financial Crime World

Brunei: Challenges in Governance and Human Rights

Criminal Activities

Transnational organized crime poses a significant threat to Brunei’s stability and security. Key issues include:

  • Drug Trafficking: Large-scale operations targeting drug trafficking organizations have led to arrests and seizures of substantial quantities of drugs and assets.
  • Human Trafficking: The country lacks a dedicated facility for addressing human trafficking, but rehabilitation and protection centers provide assistance to victims.
  • Cybercrime: Brunei is vulnerable to cybercrime due to its reliance on technology and online infrastructure.

Criminal Justice System

Brunei’s legal system operates under a unique blend of secular and Sharia courts:

  • Secular Courts: Civil and criminal law are based on English common law, providing a framework for justice in these areas.
  • Sharia Courts: Sharia law is enforced in Sharia courts, addressing matters related to Islamic law and personal status.

Economic Environment

Brunei’s economy is heavily dependent on oil extraction:

  • Oil Extraction: Oil accounts for almost all of Brunei’s total exports and over half of its GDP, making the country vulnerable to fluctuations in global oil prices.
  • Economic Diversification: Efforts to diversify the economy have been slow due to a centralized state structure that relies on the monarchy.

Social Protection and Civil Society

Brunei faces challenges in protecting human rights and promoting civil society:

  • Human Trafficking: Victims are often deported and/or convicted as irregular workers, highlighting the need for more robust support systems.
  • Civil Society Organizations: A scarcity of CSOs exists due to national legislation ensuring close government oversight.

Key Vulnerabilities

Brunei’s reliance on oil extraction and centralized state structure contribute to significant vulnerabilities:

  • Poor Fiscal Health: The country’s economy is heavily reliant on a single industry, making it vulnerable to economic shocks.
  • Limited Financial Freedoms: Brunei’s economy is characterized by limited financial freedoms, hindering innovation and entrepreneurship.
  • High Unemployment Rates: Foreign workers are disproportionately affected by high unemployment rates.