Financial Crime World

Maldives Takes a Stand Against Money Laundering with Tough Legislation and Guidance

=====================================================

The Maldivian government has taken a significant step in combating money laundering by introducing the Prevention of Money Laundering Act, which criminalizes this illegal activity through an “all crimes” approach. The legislation is supplemented by the Prevention of Money Laundering and Funding of Terrorism Regulations, as well as the Implementing Procedures issued by the Financial Intelligence Analysis Unit (FIAU).

Under the Prevention of Money Laundering Act, drug-related money laundering is also criminalized through the Dangerous Drugs Ordinance and the Medical and Kindred Professions Ordinance.

The Role of the Financial Intelligence Analysis Unit (FIAU)

The FIAU has been established to oversee the implementation of these regulations. It provides a detailed interpretation of the regulations and serves as a guide for subject persons in understanding and fulfilling their obligations under the law. These procedures are binding on all affected parties, and failure to comply can result in administrative penalties.

Benefits of the Comprehensive Approach

This comprehensive approach is aimed at ensuring effective implementation of anti-money laundering policies in Maldives, thereby preventing the country from being used as a conduit for illicit funds and terrorist financing. The government’s efforts demonstrate its commitment to maintaining a robust financial system and protecting the integrity of its economy.

Key Takeaways

  • The Prevention of Money Laundering Act criminalizes money laundering through an “all crimes” approach
  • The legislation is supplemented by regulations and implementing procedures issued by the FIAU
  • Failure to comply with the regulations can result in administrative penalties
  • The comprehensive approach aims to prevent Maldives from being used as a conduit for illicit funds and terrorist financing