Financial Crime World

Maldives Strengthens Fight Against Money Laundering, Terrorist Financing

The Maldives has taken a significant step in combatting financial crimes by implementing new measures to strengthen its Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) regime.

Strengthened AML Provisions

The country’s authorities have introduced new laws and regulations aimed at ensuring that ML charges can be brought in the absence of a conviction for the predicate offense. This move is designed to ensure effective use of the AML provisions and allow for the intentional element of the offense to be inferred from all objective factual circumstances.

Autonomously Criminalizing Terrorist Financing

The Maldives has also criminalized terrorist financing autonomously, making it an offense to provide or collect funds for terrorist purposes. The country’s authorities have made it clear that the TF offense applies to persons abroad who finance terrorist acts in the Maldives.

Key Features of the New Measures

  • Introduced new laws and regulations to strengthen AML provisions
  • Criminalized terrorist financing autonomously
  • Established a Financial Intelligence Unit (FIU) with sufficient operational independence and autonomy
  • Implemented measures to freeze and seize property suspected of being proceeds of crime
  • Required financial institutions to implement customer due diligence measures, including enhanced or reduced measures depending on the risk of ML or terrorist financing
  • Introduced a compulsory cross-border currency declaration system or disclosure system in line with Special Recommendation IX

Enhanced Investigative and Prosecutorial Powers

The new measures are designed to ensure that ML and TF offenses are investigated and prosecuted effectively. The country’s authorities have also provided for legislative basis for the police to postpone or waive the arrest of suspected persons or the seizure of money.

Benefits of the Strengthened Measures

  • Enhances the effectiveness of AML provisions
  • Strengthens the fight against terrorist financing
  • Provides a robust legal framework for combating financial crimes
  • Demonstrates the country’s commitment to protecting its economy from the threats posed by money laundering and terrorist financing

The Maldives’ strengthened measures demonstrate its commitment to combating financial crimes and protecting its economy from the threats posed by money laundering and terrorist financing.