Financial Crime World

Timor-Leste: Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) Regulations by Country

The Financial Action Task Force (FATF) has released a report on the anti-money laundering (AML) and counter-terrorist financing (CFT) regulations in Timor-Leste, a member of the Asia/ Pacific Group on Money Laundering (APG). The report provides an overview of the country’s AML/CFT framework, including its laws, regulations, and implementation.

Progress Made by Timor-Leste

According to the report, Timor-Leste has made significant progress in strengthening its AML/CFT regime since its previous assessment. The country has implemented a range of measures to combat money laundering and terrorist financing, including:

  • Establishment of a Financial Intelligence Unit (FIU)
  • Introduction of customer due diligence requirements for financial institutions

Areas for Improvement

The report also highlights some areas where Timor-Leste needs to improve its AML/CFT regime, including:

  • Enhancing supervisory framework for non-financial businesses and professions
  • Strengthening cooperation with foreign authorities

Specific Regulations

In terms of specific regulations, the report notes that Timor-Leste has implemented a range of laws and regulations aimed at preventing money laundering and terrorist financing. These include:

  • Anti-Money Laundering Law (2009): requires financial institutions to implement customer due diligence measures
  • Counter-Terrorist Financing Law (2011): criminalizes the provision of funds or other forms of support to terrorist organizations

Challenges Faced by Timor-Leste

The report also highlights some challenges faced by Timor-Leste in implementing its AML/CFT regime, including:

  • Limited resources and capacity constraints
  • Training programs for financial institutions and law enforcement agencies are underway to address these challenges

Conclusion

Overall, the report concludes that Timor-Leste has made significant progress in strengthening its AML/CFT regime, but there are still areas where improvement is needed. The country’s continued efforts to implement its AML/CFT laws and regulations will be important in helping it to prevent money laundering and terrorist financing.