Financial Crime World

The Maldives: A Complex Landscape of Organized Crime

Situation Assessment

The Maldives is facing a complex situation regarding organized crime, with efforts to combat it hindered by pervasive and systemic issues such as corruption and state-embedded criminality.

Key Points:

  • The current administration is taking steps to reverse the trend of collusion between state-embedded actors and gangs.
  • Foreign actors play a significant role in criminal markets like drug trafficking and human smuggling, with international organizations like al-Qaeda and ISIS potentially involved.
  • Islamist militancy is growing, and there are concerns about the politicization of state institutions.

Leadership and Governance

Despite democratic progress marked by the country’s first multi-party presidential election in 2008, opposition activities and free expression remain restricted. Corruption, state capture, and state-embedded criminality are still widespread issues.

Key Points:

  • The new government has taken a more coherent approach to combating corruption and organized crime.
  • Corruption remains a significant issue, with the judiciary and law enforcement bodies being particularly affected.

Criminal Justice and Security

The Maldivian judiciary lacks the ability to provide adequate access to justice and the rule of law. Corruption in the judiciary weakens accountability and trust in the courts.

Key Points:

  • Law enforcement bodies struggle with public trust and high levels of corruption and bribery.
  • Prison conditions are poor, and prison reform is being addressed by UNODC-facilitated training.

Economic and Financial Environment

The private sector suffers from low access to credit and weak minority-investor protections. Monopolistic tendencies and control by a small handful of ultra-rich resort owners characterize the market.

Key Points:

  • Anti-money laundering measures are notoriously weak, with both the Financial Intelligence Unit and Bank of Maldives subject to political interference.
  • The country’s economic environment is vulnerable to organized crime due to its financial system’s weaknesses.

Civil Society and Social Protection

The civil society sector is energetic but has a poor relationship with the state. Witness protection programmes are almost non-existent and ineffective.

Key Points:

  • Most drug treatment facilities are run by individuals or NGOs.
  • Law enforcement reform is necessary to end infiltration by those linked to organized crime.
  • The country’s social protection mechanisms need improvement to address the impact of organized crime on citizens.