Financial Crime World

TWO-YEAR PROBE NETS SUCCESS IN FIGHT AGAINST MONEY LAUNDERING

Significant Victory Against Financial Crime

The Public Prosecutor’s Office has successfully investigated and solved a major money laundering case that had been ongoing since mid-2015. The case, initiated by an internal investigation by the PFMCBP (Public Financial Management and Control Bureau), involved embezzlement and domestic money laundering crimes.

Investigation and Recovery of Proceeds

Through a thorough investigation, authorities were able to recover all of the proceeds of crime for the state. This success highlights the importance of direct investigations into money laundering as independent offenses. This approach allows State authorities to investigate and prosecute money laundering cases effectively, without being hindered by the complexity of predicate offenses.

FIGHT AGAINST MONEY LAUNDERING INTENSIFIES

Progress in Combating Money Laundering

In recognition of the significant threat that money laundering poses to Timor-Leste’s economy and financial sector, authorities have been working tirelessly to combat this crime. In 2018, the Financial Intelligence Unit (FIU) reported 109 suspicious transaction reports (STRs), with about 20 STRs substantiated and reported to the General Prosecutor’s Office for further criminal proceedings.

Success in Investigations

Of these, six cases were officially opened and investigated by the Scientific Criminal Police Investigation (PCIC). This demonstrates the progress being made in the fight against money laundering in Timor-Leste.

CHALLENGES REMAIN

Overcoming Challenges

Despite this success, there are still several challenges facing authorities in their efforts to combat money laundering. Some of these challenges include:

  • The country’s reliance on a cash-based economy, which makes it difficult to conduct effective investigations and trace illicit funds.
  • A lack of international cooperation on mutual legal assistance, with foreign authorities often reluctant to provide assistance to Timor-Leste.
  • Limited human resources available to investigate and prosecute money laundering cases.

Call for Intensive Dialogue

To overcome these challenges, there is a need for intensive dialogue between Timor-Leste authorities and their foreign counterparts. This would enable the sharing of best practices, cooperation on investigations, and mutual assistance in combating financial crime. By working together, it will be possible to achieve successful investigations, prosecutions, and asset recovery, ultimately serving justice for all in Timor-Leste.