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Lao PDR Anti-Money Laundering and Combating the Financing of Terrorism Law: Reporting Requirements

The Lao People’s Democratic Republic has implemented the Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) Law to prevent and detect money laundering and terrorist financing activities. Under this law, financial institutions, legal persons, and organizations are required to report certain transactions and activities to the Anti-Money Laundering Intelligence Office (AMLI).

Article 24: Customer Due Diligence

Financial institutions must collect data on customers’ aims and objectives when using their services or establishing business relations. They must also attempt to determine whether customers’ business ties are for their own benefit or for others, including identifying the real beneficial owner of funds or properties.

Article 25: Dealing with Politically Exposed Persons (PEPs)

Financial institutions must have an appropriate system in place to identify and manage risks associated with PEPs. They must also report any suspicious transactions involving PEPs to AMLI.

Article 26: Dealing with Correspondent Banks

Financial institutions that maintain business ties with correspondent banks must review the legal status of those banks, gather data on their business operations, assess their creditworthiness and management, and report any suspicious transactions to AMLI.

Article 27: Wire Transfer Reporting

When conducting wire transfers, financial institutions must collect and verify information about the sender, recipient, and transaction amount. They must also report any suspicious transactions to AMLI.

Article 32: Confidentiality

Financial institutions and their employees are required to keep confidential all information reported to AMLI or related to suspected money laundering or terrorist financing activities. Any breach of confidentiality may result in disciplinary action or criminal charges.

Chapter 3: Obligations on Declaring Cash, Valuable Goods, and Bearer Negotiable Instruments

Natural persons who transport cash, valuable goods, or bearer negotiable instruments worth more than the prescribed limit must declare them to customs officers at border crossings. Customs authorities are responsible for verifying these declarations and reporting any suspicious transactions to AMLI.

Legal persons, organizations, and non-profit organizations operating in Laos must comply with this law and related regulations to prevent their activities from being used as a tool for money laundering or terrorist financing. They must also ensure transparency and accountability in their internal management.

Reporting Requirements

Financial institutions, legal persons, organizations, and non-profit organizations are required to report the following transactions and activities to AMLI:

  • Suspicious transactions
  • Transactions involving PEPs
  • Wire transfers
  • Cash, valuable goods, or bearer negotiable instruments worth more than the prescribed limit

Failure to comply with these reporting requirements may result in administrative sanctions, criminal charges, or other legal consequences.