Cash Seizures Continue to Rise in Timor-Leste, Customs Staff Need Training

In the last three years, customs staff in Timor-Leste have seized cash worth millions of dollars, highlighting the need for further training and standardization in maintaining high professional standards.

Lack of Coordination and Concerns about Money Laundering and Terrorist Financing

According to reports, there is currently no arrangement for coordinated exchange of information between domestic agencies or with other countries regarding cross-border declarations and cash seizures. Under the new regime, copies of declaration forms will be shared immediately with the Financial Intelligence Unit (FIU).

The surge in cash seizures has led to concerns about money laundering and terrorist financing. Customs officials have seized large amounts of cash without proper documentation, sparking fears that these funds may be linked to illegal activities.

Need for Training and Standardization

To combat this issue, customs staff need training on how to properly handle and investigate cash seizures. The government is also considering implementing stricter regulations on cash transactions and requiring businesses to report suspicious transactions.

Challenges in Implementing AML/CTF Regulations

In related news, the Bank of East Timor (BCTL) has reported that only two sanctions have been imposed for violations of anti-money laundering and combating the financing of terrorism (AML/CFT) rules. The BCTL has conducted six examinations on AML/CFT compliance but needs adequate human and technical resources to ensure effective implementation of the new regime.

Informal Remittance Sector Needs Regulation

The government is also working to regulate the informal remittance sector, which continues to operate without proper oversight. Article 28 of the AML/CFT Law requires registration of money transfer operators (MTOs), and the BCTL is finalizing a public instruction on MTOs to address this regulatory gap.

Conclusion

As Timor-Leste continues to grapple with these issues, it remains to be seen how effective the government’s efforts will be in combating money laundering and terrorist financing. One thing is certain, however - the need for further training and standardization among customs staff is a critical step towards ensuring the integrity of the country’s financial system.

Key Takeaways

• Cash seizures continue to rise in Timor-Leste, highlighting the need for further training and standardization.
• There is currently no coordinated exchange of information between domestic agencies or with other countries regarding cross-border declarations and cash seizures.
• Customs officials have seized large amounts of cash without proper documentation, sparking concerns about money laundering and terrorist financing.
• The government needs to implement stricter regulations on cash transactions and require businesses to report suspicious transactions.
• The Bank of East Timor needs adequate human and technical resources to ensure effective implementation of AML/CFT regulations.