Lao PDR’s Anti-Money Laundering Law: A Summary

The Lao PDR’s Anti-Money Laundering Law is a crucial piece of legislation aimed at preventing and combating money laundering and terrorism financing within the country. This article provides an overview of the main points of each chapter, including obligations on reporting entities, confidentiality, and obligations on declaring cash, valuable goods, and bearer negotiable instruments.

Chapter 1: Obligations on Reporting Entities

Reporting entities are required to take certain steps to prevent money laundering and terrorism financing. These include:

• Keeping records of customers, business ties, and transactions: Article 28 requires reporting entities to maintain accurate and detailed records of their customers, business relationships, and financial transactions.
• Postponing suspicious transactions for three working days: Article 29 states that reporting entities must delay suspicious transactions for three working days before reporting them to the Anti-Money Laundering Investigation Office (AMLIO).
• Reporting cash transactions, wire transfers, and other specified transactions: Article 30 requires reporting entities to submit reports on certain financial transactions, including cash transactions, wire transfers, and other specified transactions.
• Reporting suspicious transactions within three days: Article 31 mandates that reporting entities must report suspicious transactions to AMLIO within three working days, regardless of the transaction amount.

Chapter 2: Confidentiality

Reporting entities are required to maintain confidentiality when dealing with suspected money laundering or terrorism financing cases. This includes:

• Keeping confidential information related to suspected money laundering or terrorism financing: Article 32 requires reporting entities to protect sensitive information related to suspected money laundering or terrorism financing.

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

Natural persons and other individuals are required to declare certain items when entering the country. These include:

• Declaring cash, valuable goods, or bearer negotiable instruments exceeding the Bank of Lao PDR’s limit: Article 33 states that natural persons must declare cash, valuable goods, or bearer negotiable instruments exceeding a specified limit at border crossings.
• Examination and seizure of undeclared items: Article 34 requires customs authorities to examine declarations and seize or sequestrate undeclared items related to money laundering or terrorism financing.

Chapter 4: Activities of Legal Persons or Organisations and Non-Profit Organisations

Legal persons, organisations, and non-profit organisations operating in Lao PDR must comply with the law to prevent money laundering. These include:

• Compliance with the law to prevent money laundering: Article 35 requires legal persons or organisations operating in Lao PDR to adhere to anti-money laundering regulations.
• Monitoring and inspection of non-profit organisations: Article 36 mandates that non-profit organisations operating in Lao PDR must be monitored and inspected regularly to prevent money laundering.
• Transparency in internal management, ownership, and beneficiary data: Article 37 requires legal persons, organisations, and non-profit organisations to ensure transparency in their internal management, ownership, and beneficiary data.

Please note that this is an unofficial translation of the Lao PDR’s Anti-Money Laundering Law. The actual text may vary depending on the official version of the law. If you need further clarification or have specific questions, I’d be happy to help!