Financial Crime Data Analytics Tools in Lao PDR Critical to Improved Supervision

Vientiane, Laos - October 30, 2019

A new technical assistance report has highlighted the importance of implementing risk-based supervision (RBS) in the Lao People’s Democratic Republic to improve the quality of supervision and prevent financial crime.

Key Recommendations

• Expedite the formal approval of the RBS manual
• Fully implement RBS methods in practice, despite other supervisory priorities that may delay this process
• Better identify root causes of risks through well-reasoned analysis and accompanying supervisory action
• Modify existing documents to enhance their usefulness and quality

Foreign-Branch Supervision

The report recommends special consideration be given to:

• The extent of adequate oversight by the branch head office
• Supervision by the home supervisor
• Overall financial condition of the foreign banking group

Examples of qualitative criteria for foreign-branch rating are also provided.

Implementation of RBS Critical to Preventing Financial Crime

According to an IMF official, “The implementation of RBS is critical to preventing financial crime in Laos. We hope that this report will provide valuable guidance to the authorities as they work to strengthen their supervisory framework.”

Download the Report

The report, titled Country Report No. 2019/331, is available for free download from the IMF website.