Financial Crime World

Corruption Remains a Persistent Challenge in Timor-Leste Despite Anti-Corruption Efforts

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Despite the establishment of an anti-corruption commission and audit court, corruption remains a significant challenge in Timor-Leste. However, experts say that the primary issue is not corruption itself, but rather entrenched nepotism.

Challenges to Combatting Corruption

  • The country has struggled to ratify major international treaties on organized crime, with only five out of 10 instruments ratified.
  • The lack of adherence is attributed to Timor-Leste’s post-conflict status and its ongoing struggles to establish the rule of law.
  • At a national level, the legal framework criminalizes all organized crime-related offenses, but enforcement remains a problem.

Judicial System and Law Enforcement

The country’s judicial system has improved significantly over the past two decades, thanks to support from the United Nations Development Programme and bilateral partners. However, concerns remain about the capacity of the judiciary and the lack of special units dedicated to prosecuting organized crime.

  • Timor-Leste has two law enforcement agencies, but their effectiveness in combating organized crime is seen as weak due to corruption within the police force.
  • The country also lacks border control, which makes it vulnerable to transnational organized crime.

Economic and Financial Environment

Timor-Leste has legal and institutional measures in place to combat money laundering, but lacks the necessary means to implement them effectively. The construction and tourism sectors are also largely unregulated, providing opportunities for money laundering.

  • The country’s civil society and social protection mechanisms are also limited.
  • While there are some provisions in place to assist victims of organized crime, including human trafficking, protection services are inadequate and underutilized.

International Cooperation

Despite these challenges, Timor-Leste has taken some steps towards promoting international cooperation in the fight against organized crime. The country’s government must continue to address these issues head-on if it is to make meaningful progress in combating corruption and organized crime.

Sources:

  • Global Organized Crime Index
  • United States Department of State
  • OCINDEX.NET