Financial Crime World

MALDIVES FALLS SHORT IN FIGHT AGAINST MONEY LAUNDERING AND TERRORIST FINANCING

Cochin, India - International Monetary Fund (IMF) Report Reveals Shortcomings in Maldives’ Anti-Money Laundering and Combating the Financing of Terrorism Framework

A recent report by the International Monetary Fund (IMF) has highlighted a number of shortcomings in the Maldives’ anti-money laundering and combating the financing of terrorism (AML/CFT) framework. Despite being a major hub for international trade and finance, the Maldives lacks a robust system to detect and prevent money laundering and terrorist financing.

Shortcomings in AML/CFT Framework

  • Lack of capacity in law enforcement agencies, including the police and prosecutor general’s office
  • Judiciary hampered by shortage of criminal procedure rules, leading to slow and uncertain legal proceedings
  • Terrorist financing not criminalized in a separate and autonomous way, making it difficult for authorities to effectively prosecute those who provide financial support to terrorists
  • No laws or procedures in place to freeze terrorist funds or assets, as required by United Nations Security Council Resolutions (UNSCR)

Significant Implications

The Maldives’ failure to effectively combat money laundering and terrorist financing has significant implications for the country’s economy and national security. The report highlights that drug trafficking is a major problem in the Maldives, with an estimated US$157,000 being generated every day.

“The Maldives needs to take immediate action to strengthen its AML/CFT framework and address the significant shortcomings identified in this report,” said [Name], IMF representative for the Maldives. “Failure to do so will continue to put the country’s financial system at risk and undermine its ability to effectively combat money laundering and terrorist financing.”

Recommendations

The report makes several recommendations to improve the Maldives’ AML/CFT framework, including:

  • Strengthening criminal procedure rules
  • Increasing capacity in law enforcement agencies
  • Improving coordination between authorities

Access the Full Report

The full report can be accessed on the IMF website.