Financial Crime World

New Anti-Corruption Law Adopted by Timor-Leste

A Significant Step in the Fight Against Corruption

Dili, September 1, 2020 - The National Parliament of Timor-Leste has approved a new anti-corruption law, which was promulgated by the President of the Republic on August 26th. The law will come into effect after 180 days.

Key Provisions

  • Establishes effective measures to combat corruption in line with the country’s constitutional principles
  • Defines general measures to prevent corruption and outlines penalties for corrupt crimes
  • Changes existing legislation related to preventing and combating corruption
  • Introduces new categories of illegal acts and concentrates all corruption crimes in a single legal framework

Public Sector Focus

  • Emphasizes the importance of observing proper procedures for selecting and training public officials
  • Proposes rules for guiding and regulating the conduct of public officials
  • Requires regular training programs to promote integrity, honesty, responsibility, and impartiality

Whistleblower Protection and Transparency

  • Allows police and judicial authorities to accept anonymous complaints
  • Protects whistleblowers from reprisals
  • Promotes transparency in procurement procedures
  • Emphasizes the need for these processes to be based on economic criteria

Income, Assets, and Interests Declaration

  • Requires all individuals in public service and their household members to declare income, assets, and interests
  • Enables the state to monitor wealth variations and identify significant increases

Accountability for Legal Persons

  • Recognizes the importance of accountability for legal persons
  • Makes commercial companies liable for illegal practices such as bribery or money laundering

Penalties for Corruption Crimes

  • Defines corruption crimes including passive corruption, active corruption, embezzlement, and abuse of power, among others
  • Those convicted of these crimes punishable by more than five years’ imprisonment will be banned from holding public office for 5-10 years

Reaction from the Government

The Minister of the Presidency of the Council of Ministers and Government Spokesman, Fidelis Manuel Leite Magalhães, hailed the new law as a significant step in the country’s fight against corruption. “This law marks a fundamental stage in our national cause to combat corruption,” he said. “However, the determining factor will be institutional and social preparations to rigorously implement the law.”