Customs Staff Demand Further Training Amid Cash Seizures

Background

In East Timor, customs staff have been facing three cash seizures since 2002. Despite these incidents, there is a growing concern about the lack of coordination between domestic agencies and other countries regarding cross-border declarations and cash seizures.

The Latest Seizure

On [date], authorities discovered a large sum of cash being transported across the border without proper declarations. This has raised concerns about the need for further training among customs staff to maintain high professional standards and confidentiality.

Challenges in Implementing AML/CFT Regime

The Bank of Central Timor-Leste (BCTL) is responsible for regulating, licensing, registering, and supervising all financial institutions in East Timor. However, there are several challenges in implementing the Anti-Money Laundering/Combating Financing of Terrorism (AML/CFT) regime.

• Only 20 Suspicious Transaction Reports (STRs) were submitted prior to the enactment of the new law, and none since its passage.
• The BCTL has conducted six examinations on AML/CFT compliance, but only two sanctions have been imposed for violations of AML/CFT rules.
• The informal remittance sector continues to operate without regulation, despite Article 28 of the AML/CFT Law requiring their registration.

Shell Banks and Money Laundering Concerns

Authorities have discovered several shell banks operating in East Timor, which are prohibited by Article 8 of the AML/CFT Law. This has raised concerns about the potential for money laundering and terrorism financing.

Training Needs among Customs Staff

As East Timor continues to work towards strengthening its financial sector, customs staff are demanding further training to ensure that they can effectively implement the new regime. With only two sanctions imposed by the BCTL for violations of AML/CFT rules, authorities are under pressure to improve their compliance and reporting requirements.

Support Needed for Effective Implementation

The BCTL has adequate human resources to ensure the effective implementation of the new regime, but technical resources may be lacking. The agency is calling on the government to provide additional support to enable them to carry out their duties effectively.

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