Financial Crime World

Money Laundering Investigation Faces Hurdles in Timor-Leste

Cash-Based Economy and Lack of International Cooperation Hinder Investigations

Dili, Timor-Leste - The Financial Intelligence Unit (FIU) has reported a significant number of suspicious transactions, but the investigation process is hindered by several challenges. According to a report by the FIU, 109 suspicious transaction reports were filed in 2018, with about 20 substantiated and reported to the General Prosecutor’s Office for further criminal proceedings.

Challenges in Conducting Investigations

  • Cash-based economy: Timor-Leste’s cash-based economy makes it difficult for law enforcement authorities to conduct effective investigations using tracing methods.
  • Lack of international cooperation: Foreign authorities have been reluctant to fulfill MLA requests from Timor-Leste, complicating the investigation process.
  • Human resource shortage: Only 24 investigators at the Anti-Corruption Commission (ACC) and five specialized public prosecutors dedicated to handling corruption, money laundering, and organized crime cases.

Limited Capacity for Investigations

  • Quality of resources: Investigators struggle to coordinate, communicate, and cooperate with foreign authorities due to a lack of training and experience.
  • Inadequate infrastructure: The country’s limited infrastructure hinders the ability to conduct complex investigations.

Commitment to Fighting Corruption and Money Laundering

Despite these challenges, law enforcement authorities in Timor-Leste are committed to fighting against corruption and money laundering. However, the lack of international cooperation and human resources hinders their ability to achieve successful investigations, prosecutions, and asset recovery.

Overcoming Hurdles

  • Intensive dialogue between Timor-Leste authorities and foreign counterparts is necessary to break down barriers and achieve successful investigations, prosecution, and asset recovery.
  • Strengthening international cooperation and human resources will be crucial in serving justice for all in Timor-Leste.