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Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) Regulations in Laos

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Article 2: Dealings with Corresponding Banks

Reporting entities are required to review the following information about corresponding banks:

  • Article 2-6: Legal Person Status: Review the legal person status of corresponding banks.
  • Article 2-7: Business Operations: Gather data on the nature of business operations of corresponding banks.
  • Article 2-8: Creditworthiness: Assess creditworthiness, management, and audit of corresponding banks.
  • Article 2-9: AML/CFT Implementation: Assess AML/CFT implementation of corresponding banks.
  • Article 2-10: Laws and Regulations: Observe relevant laws and regulations related to business relations with corresponding banks.

Article 3: Data Collection on Wire Transfer

Financial institutions are required to gather and check the following information about wire transfers:

  • Article 2-7: Transfer Details: Gather and check information on transferors’ name, address, account number, and purpose of the transfer.
  • Article 2-8: Recording Requirements: Intermediary financial institutions must ensure correct and complete recording of transfer details before delivery to beneficiaries.
  • Article 2-9: Verification Requirements: If a transfer lacks information, the receiving financial institution must verify with the transferring institution or beneficiary. If no information is provided, the payment should be refused, and the money returned to the transferring institution.

Article 4: Record Keeping

Reporting entities are required to maintain records of customers, business relations, and transactions for supply to AMLIO and other concerned organizations. These records must include:

  • Article 2-8: Customer Identification: Copies of identification documents of customers and beneficiaries (kept for at least 10 years).
  • Article 2-9: Transaction Records: Records of transactions undertaken by customers (kept for at least 5 years).

Article 5: Transaction Deferral

If a customer’s transaction is suspected to be related to money laundering or financing terrorism, the reporting entity must defer the transaction for three working days and report the case to AMLIO.

Article 6: Reporting

Reporting entities are required to report transactions exceeding certain thresholds (to be set by the Bank of Lao PDR):

  • Article 3-0: Cash Transactions: Cash transactions.
  • Article 3-1: Wire Transfers: Wire transfers.
  • Article 3-2: Other Transactions: Other transactions as defined by AMLIO.

Article 7: Suspicious Transaction Report

If a reporting entity suspects a transaction is related to money laundering or financing terrorism, they must report the case to AMLIO within three working days.

Article 8: Confidentiality

The management and staff of reporting entities must maintain confidentiality of transaction reports and other information reported to AMLIO.