Financial Crime World

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Combating Financial Terrorism in Brunei Darussalam

Effective anti-money laundering and combating the financing of terrorism (AML/CFT) policies and measures are crucial to ensuring the integrity and stability of Brunei Darussalam’s financial sector and economy. Money laundering (ML) and terrorist financing (TF), as well as the financing of the proliferation of weapons of mass destruction (WMD) or proliferation financing (PF), are crimes with significant economic consequences that can destabilize a country’s financial system and reputation.

Macroeconomic Impact of Illicit Financial Flows

Illicit financial flows (IFFs) have a significant impact on Brunei Darussalam’s macroeconomy, including:

  • Destabilizing “hot money” resulting from inflows and outflows
  • Banking crises
  • Ineffective revenue collection
  • Broader governance weaknesses
  • Reputational risks for international financial centers
  • Loss of correspondent banking relationships

2023 Review of the AML/CFT Strategy

The 2023 Review of the IMF’s AML/CFT Strategy aims to enhance its work in combating financial terrorism and promoting financial integrity. The review found that:

  • The current principles of engagement are broadly appropriate
  • A greater focus on the macroeconomic impacts of money laundering, related financial crime, and terrorism financing is needed

Curbing Financial Crime Requires Better Understanding

Policymakers in Brunei Darussalam need a fuller understanding of the consequences of illicit flows, including:

  • Tackling the fiscal, monetary, financial, and structural costs
  • Better coordination and cooperation among countries to combat money laundering and terrorist financing

Public Consultation on AML/CFT Work

The IMF launched a public consultation on its AML/CFT work, seeking feedback from civil society organizations (CSOs) around the world. CSOs emphasized the need for:

  • Increased focus on illicit financial flows
  • Beneficial ownership transparency efforts
  • Greater attention to AML/CFT weaknesses in advanced economies

What is ML/TF/PF?

Money laundering is the processing of assets from criminal activity to obscure their illegal origins. Terrorism financing involves the raising and processing of funds to supply terrorists with resources. Financing of the proliferation of weapons of mass destruction requires countries to implement targeted financial sanctions to comply with United Nations Security Council resolutions.

Publications

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Blogs

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AML/CFT Assessments

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Videos and Events

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