Financial Crime World

Maldives Strides Towards Financial Inclusion While Combating Money Laundering and Terrorism Funding

Progress in Establishing an Effective Anti-Money Laundering and Counter-Terrorist Financing Framework

The Maldives has made significant strides in laying down the foundations for a robust anti-money laundering and counter-terrorist financing (AML/CFT) system. A recent report highlights the country’s progress in implementing various laws, regulations, and measures aimed at preventing money laundering and terrorism financing.

Key Measures Implemented by the Maldives

  • Establishment of a Financial Intelligence Unit (FIU): The FIU serves as the central body responsible for receiving, analyzing, and disseminating financial intelligence related to money laundering and terrorism financing.
  • Implementation of Laws and Regulations: The Anti-Money Laundering Act of 2006 and the Anti-Terrorism Act of 1990 provide a framework for regulating financial institutions, enforcing customer due diligence requirements, and ensuring reporting obligations.

Areas for Improvement

Despite these advances, the report identifies areas where the Maldives could strengthen its AML/CFT system:

  • Enhancing the FIU’s Capacity: Improving the FIU’s ability to receive and analyze financial intelligence would enhance its effectiveness in combating money laundering and terrorism financing.
  • Improving Cooperation between Law Enforcement Agencies: Enhancing cooperation between law enforcement agencies would facilitate a more effective response to AML/CFT threats.
  • Increasing Public Awareness: Raising public awareness about the risks associated with money laundering and terrorism financing would promote financial inclusion and prevent illicit activities.

Assessment of Compliance with FATF Recommendations

The evaluation assesses the Maldives’ level of compliance with the Recommendations of the Financial Action Task Force (FATF), an intergovernmental organization that sets international standards for AML/CFT. The report concludes that the Maldives has made significant progress in addressing FATF’s concerns, but notes that there are still areas where improvements can be made.

Full Report

The full report provides a comprehensive overview of the Maldives’ AML/CFT system and offers practical recommendations for strengthening its effectiveness.