Maldives Making Strides in Anti-Money Laundering and Terrorism Financing Prevention

The tiny island nation of the Maldives has been making significant progress in its efforts to prevent money laundering (AML) and combat financing of terrorism (CFT). Here are some key developments:

Joining the Asia/Pacific Group on Money Laundering (APG)

• The Maldives joined the APG in July 2008. This regional body focuses on setting standards and promoting cooperation among its members to prevent money laundering and terrorism financing.

Implementation of Comprehensive AML/CFT Framework

• Since joining the APG, the Maldives has implemented a robust AML/CFT framework. This includes:
  • Establishment of a Financial Intelligence Unit (FIU) within the Maldives Monetary Authority.
  • Enactment of relevant laws and regulations.
  • Development of an effective regulatory and supervisory system.
  • Implementation of customer due diligence measures.

Role of the Financial Intelligence Unit (FIU)

• The FIU is a crucial component of the Maldives’ AML/CFT system. It is responsible for:
  • Receiving, analyzing, and disseminating suspicious transaction reports.
  • Detecting and preventing money laundering and terrorism financing activities.

Evaluation by the International Monetary Fund (IMF)

• In late 2010, the IMF evaluated the Maldives as part of the APG’s 2nd Round of Mutual Evaluations.
• The resulting report was adopted at the 2011 APG Annual Meeting in Kochi, India and published by the IMF and the APG in January 2012.
• This report highlighted the Maldives’ commitment to a robust AML/CFT system and its dedication to preventing money laundering and terrorism financing.

International Cooperation

• The Maldives’ inclusion in the APG and progress in AML/CFT is a positive step towards international cooperation in fighting financial crimes.
• The country continues to work diligently to maintain and improve its AML/CFT system, making it a safer place for all citizens and visitors.