Financial Crime World

Timor-Leste Grapples with Financial Crime Amidst Oil Revenues Boom

Dili, Timor-Leste - As one of the world’s youngest and poorest Asian countries, Timor-Leste is struggling to maintain stability amidst its fragile statehood.

Poverty and Corruption in Timor-Leste

With a poverty rate standing at 41%, Timor-Leste loses around $60 million annually due to corruption, according to World Bank estimates. The extraction of oil in the country has created opportunities for corruption, embezzlement, and tax evasion, making Timor- Leste vulnerable to global money-laundering schemes.

Government Efforts to Combat Corruption

In an effort to combat corruption, the Anti-Corruption Commission (CAC) was established in 2009. Despite its primary task of preventing corruption, the Commission has also developed investigative capacities with support from UNODC’s national anti-corruption project.

Recent Training on Advanced Criminal and Financial Investigations

A recent three-day training on Advanced Criminal and Financial Investigations and Inter-Agency Coordination for Complex, Cross-Border Corruption Cases brought together investigators and prosecutors from CAC, Scientific Police, the Prosecutor General Office, and the Financial Intelligence Unit. The training aimed to:

  • Enhance investigative skills in handling complex corruption cases involving financial transactions
  • Promote cooperation among key institutions

UNODC is providing technical assistance to strengthen the legal framework against corruption. A national roundtable was facilitated by UNODC in November 2018 to support the development of a draft Anti-Corruption Law, which will be debated soon in Parliament.

Additionally, UNODC is working with CAC to develop a national anti-corruption strategy and has provided recommendations on developing an effective legal framework for protecting reporting persons.

The Importance of Effective Corruption Combating

As Timor-Leste navigates its fragile statehood, addressing financial crime and corruption remains a top priority. The country’s ability to effectively combat these issues will be crucial in maintaining stability and ensuring that its oil revenues are used transparently and for the benefit of its citizens.

Conclusion

In conclusion, Timor-Leste is faced with significant challenges related to poverty, corruption, and financial crime. To overcome these challenges, it is essential to strengthen institutions, enhance investigative skills, and develop effective legal frameworks against corruption. With international support and cooperation, Timor-Leste can work towards a more stable and transparent future for its citizens.