Here is the converted article in Markdown format:

Lao PDR Introduces New Regulations to Combat Money Laundering and Terrorist Financing

======================================================

Vientiane, Laos - The Lao People’s Democratic Republic has introduced a new set of regulations aimed at preventing the misuse of financial systems for money laundering and terrorist financing. These regulations came into effect on [date] and require financial institutions and other reporting entities to implement strict measures to identify and report suspicious transactions.

New Regulations

According to Article 2.1 of the regulations, reporting entities must obtain permission from relevant authorities before initiating or continuing business relations with customers suspected of money laundering or terrorist financing. Additionally, they must take appropriate measures to identify the sources of funds or properties involved in these transactions.

Corresponding Banks and Shell Banks

The regulations also require financial institutions to review the legal person status and creditworthiness of corresponding banks before establishing business relationships with them. Corresponding banks that have dealings with shell banks or their subsidiaries will be banned from doing business with such entities.

Data Collection on Wire Transfers

In a separate article, the regulations emphasize the importance of data collection on wire transfers. Financial institutions must gather information on:

• Name and surname
• Address
• Account number
• Purpose of the transfer
• Ensure that the information is correctly recorded before delivery to the beneficiary

Record Keeping and Reporting

The regulations require financial institutions to maintain records of customers, documents on business relations, and transactions for at least five years after the end of business relations with the customers. In case of suspicious transactions, reporting entities must:

• Postpone the transactions for three working days
• Report them to the Anti-Money Laundering and Combating Financing of Terrorism (AML/CFT) Office

Thresholds and Reporting Guidelines

The regulations also introduce a threshold for cash transactions, wire transfers, and other transactions that require reporting to AMLIO. The Bank of the Lao PDR is responsible for setting these thresholds and issuing guidelines on reporting.

Confidentiality

In addition, the regulations emphasize the importance of confidentiality in transaction reports. Reporting entities must:

• Maintain confidentiality of transaction reports
• Disclose customers’ secrets only with good faith and in compliance with the law

Purpose

The new regulations are aimed at strengthening the country’s efforts to combat money laundering and terrorist financing, and preventing the misuse of financial systems for illegal activities.

Source: Ministry of Finance, Lao PDR