Financial Crime World

Brunei: A Small Country with Big Challenges in Combating Transnational Organized Crime

Drug Trafficking: A Growing Concern

Transnational organized crime is a significant threat to Brunei, a small oil-rich country in Southeast Asia. The country faces challenges related to drug trafficking, which has been on the rise in recent years.

Key Statistics:

  • Brunei is not directly involved in cocaine trafficking, but it serves as a transit point for heroin and cannabis.
  • In 2021, two large-scale operations targeting drug trafficking organizations resulted in arrests and seizures of large quantities of syabu (heroin).
  • The country has implemented stricter laws and regulations to combat drug trafficking.

Human Trafficking: A Serious Issue

Brunei is also vulnerable to human trafficking, a serious issue that requires immediate attention from the government.

Key Challenges:

  • Brunei does not have a dedicated facility to address human trafficking.
  • The government has established an inter-agency team to investigate potential cases of human trafficking, but they have failed to prosecute or convict any traffickers for the fourth consecutive year.
  • Concerns have been raised about misunderstandings about what constitutes trafficking and insufficient capacity to identify victims and investigate powerful stakeholders.

Criminal Justice and Security: A Complex System

Brunei’s legal system is divided into secular and Sharia courts, with the latter following a strict interpretation of Islamic law. This has created challenges in addressing transnational organized crime.

Key Issues:

  • The country has established an inter-agency team to investigate potential cases of human trafficking.
  • However, concerns have been raised about the effectiveness of this team due to limited capacity and resources.
  • Brunei’s unique legal system can sometimes lead to misunderstandings about what constitutes trafficking and insufficient measures to guard against exploitation.

Economic and Financial Environment: A Centralized State

Brunei’s economy relies heavily on oil extraction, which has created challenges in diversifying the country’s revenue streams.

Key Statistics:

  • Oil extraction accounts for almost all of Brunei’s total exports and over half of its GDP.
  • The country has called for economic diversification, but progress has been slow due to the centralized state structure that relies on the monarchy.
  • Brunei’s exceptional wealth and tax-free status for citizens attracts foreign investors.

Civil Society and Social Protection: A Lack of Protections

Brunei’s civil society and social protection systems are inadequate in addressing transnational organized crime.

Key Challenges:

  • The country has no national-level prevention strategies, but the government has worked on poverty reduction policies as a form of crime prevention.
  • Brunei has established an inter-agency public relations task force to raise awareness of trafficking and labour rights, but more needs to be done to protect foreign workers from exploitation.

Conclusion

Brunei faces several challenges related to transnational organized crime, including drug trafficking, human trafficking, and corruption. While the government has taken steps to address these issues, more needs to be done to ensure the country’s stability and security.