Financial Crime World

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Lao PDR Introduces Stricter Anti-Money Laundering and Combating the Financing of Terrorism Regulations

Vientiane, Lao PDR - The government of Lao PDR has introduced new regulations aimed at preventing money laundering and combating the financing of terrorism. These measures are designed to enhance transparency and accountability in financial transactions, while also strengthening cooperation between financial institutions and law enforcement agencies.

New Requirements for Financial Institutions

According to Article 27 of the regulations, financial institutions are required to:

  • Collect and verify information on wire transfers, including:
    • Name and surname
    • Address
    • Account number
    • Purpose of the transfer
  • Ensure that the information is accurate and complete before delivering it to the beneficiary
  • Check and obtain necessary details from transferring institution or beneficiary if the information is incomplete or missing
  • Report cases where payment cannot be made due to incomplete or missing information to the Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) office

Record-Keeping Requirements

Financial institutions are also required to:

  • Keep records of customer information, business ties, and transactions for at least five years after the end of the business relationship
  • Keep duplicate copies of certificates from transactions and other relevant documents

Suspicious Transaction Reporting

When a financial institution suspects that a customer’s transaction is related to money laundering or terrorism financing, it shall:

  • Postpone the transaction for three working days
  • Report the case to the AML/CFT office

Reporting entities are also required to report suspicious transactions to the AML/CFT office within three days, including:

  • Transactions suspected of being linked to predicate offenses, money laundering, or terrorism financing

Confidentiality

Article 32 emphasizes the importance of confidentiality in reporting suspected transactions. Executives and staff of financial institutions are required to keep secret any information reported to the AML/CFT office, unless disclosure is required by law or regulation.

Border Crossing Requirements

Chapter 3 of the regulations outlines the obligations on declaring cash, valuable goods, and bearer negotiable instruments at border crossings. Natural persons who take these items in and out of the country must declare them to customs officers, who will then report the information to the AML/CFT office.

The regulations also require legal persons, organizations, and non-profit organizations operating in Lao PDR to comply with anti-money laundering and combating terrorism financing requirements. These entities are required to maintain transparency and accuracy in their financial transactions and reporting.

Bank of the Lao PDR

The Bank of the Lao PDR is responsible for setting the value of cash transactions and money transfers that require reporting, as well as issuing regulations on reporting.

Government’s Emphasis

The government has emphasized the importance of these regulations in preventing money laundering and combating terrorism financing. The measures are designed to enhance cooperation between financial institutions and law enforcement agencies, while also protecting the integrity of the country’s financial system.

Source: Lao PDR Government