Financial Crimes Have Significant Impact on Economy in Brunei Darussalam

The financial crimes sector has significant implications for the economy of Brunei Darussalam. Human trafficking and smuggling are major concerns that affect the country’s foreign workers, who are often lured by promises of high salaries only to be coerced into working in poor conditions.

Human Trafficking: A Major Concern

• According to a recent report, human traffickers target migrant workers from China, Bangladesh, the Philippines, Malaysia, Indonesia, and Thailand.
• Victims are often forced into work to pay off debt or have their passports confiscated.
• Law enforcement tends to focus on criminalizing victims rather than prosecuting traffickers.

Smuggling of People: A Significant Problem

• Bangladeshi citizens are offered fake work visas by local “brokers”.
• The lack of effective law enforcement leads to an increase in these crimes.

Limited Data on Arms Trafficking

• Illicit firearms have been confiscated in isolated incidents, but there is no evidence of a large-scale problem.
• No significant issue has been reported.

Financial Sector Risks: Money Laundering and Terrorist Financing

• Despite being a member of the Asia Pacific Group against Money Laundering (APG), the country’s Anti-Money Laundering and Countering the Financing of Terrorism system has been called into question due to government officials’ involvement in large-scale money-laundering scandals.
• The lack of transparency in Brunei Darussalam’s financial system also raises concerns.

Need for Strengthened Regulations

The financial crimes sector poses significant risks for the economy of Brunei Darussalam. To mitigate these threats, strengthened regulations and enforcement mechanisms are necessary to address human trafficking and smuggling, as well as money laundering and terrorist financing.